Real Estate News

Toronto city council approves 2% property tax increase

Toronto homeowners can expect to pay around $100 more on their property tax bill this year, after city council approved a two per cent increase Wednesday.

 

Mayor John Tory supported the increase, which he called fair and affordable. City council voted 35-8 in favour of the plan during the first of two scheduled days of debate on the 2017 budget. 

City staff confirmed residents would actually pay about 3.29 per cent more, once the 0.5 per cent City Building Fund and several other fees that aren't controlled by the city are factored in.

 

During a lengthy debate, Coun. Giorgio Mammoliti put forward a motion for a zero per cent property tax increase, while Coun. Gord Perks urged city councillors to back a 4.26 per cent increase. Both motions failed.

Tory, who called Mammoliti and Perks an "odd couple," said the fact that his proposed budget falls in the middle of the two sides is an indication that it's in the right place.

Mammoliti asked Tory why he urged the mayor to ask the province to lift some of the costs off the city, which Tory pointed out he had done on Tuesday.

"We should not have the responsibility for housing — at least not the financial responsibility," Tory responded, adding if the city is going to spend money on housing the costs should be shared with the other two governments.

He also reiterated a call for the province to pay for the repairs and maintenance of the Gardiner Expressway and Don Valley Parkway, before turning to criticize Mammoliti for not helping with those efforts.

"I haven't seen you saying a peep to support me in that regard because you're busy with gameshow politics," he said.

Perks, meanwhile, said homeowners in his ward are ready to pay more property tax if it improves city services. He said his proposal would have only seen residents pay $62 more dollars per year.

He said sooner or later, the city will have to consider raising property taxes to pay for things like affordable housing, or risk being "the worst landlords in the city."

In his remarks, Tory said he never meets people who say they want their taxes increased. 

Coun. Joe Mihevc, meanwhile, put forward a motion for city staff to review the methodology used to calculate inflation, which was approved.

City staff confirmed that Toronto has held its property tax increase at or below the rate of inflation for 15 out of the last 19 years, and has some of the lowest average property tax rates in the GTA.

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Ryan Ahadian
Ryan Ahadian
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