More Thinking About Property Taxes

In a previous post, I shared that in comparison to the Greater Toronto Area property tax rates, Toronto homeowners are paying lower property tax rates http://torontostoreys.com/2018/07/gta-cities-highest-lowest-property-taxes/ - this is a fact BUT and there is a big BUT - the property values in Ward 4 are 2-3 times higher (or more) than the average house price, contributing a high property tax burden for those with stagnant/low/fixed income. With property tax increases remaining at or below the rate of inflation for the past four year, increases in property taxes for many will be too high despite the available programs, such as the Property Tax and Water Relief Programs. Also, commercial property tax rates are a significant burden for small businesses and renters in Toronto, currently at a 3.5-3.8 times higher than residential taxes. Another revenue generation source is municipal land transfer taxes at a rate of 2.0 to 2.5% for most properties in Toronto.

We need to adopt a property tax strategy that ensures Torontonians do not lose their homes because of property tax burden and all types of businesses thrive as the engines of our local, provincial and national economy. I believe that with strong financial grip on expenditures, every effort should be made to keep taxes at an affordable rate. This is based on balancing the need for sustainable, high quality municipal services with revenue generation, better value for money, state-of-good-repair investments and business development, inter-governmental integration and investment and results-based budgeting and expenditure management.