Debate on new taxes, fees could be on horizon as Toronto's fiscal struggles loom large
CBC
Facing a $993-million budget shortfall this year, city council could be poised to once again study new taxes on parking, congestion or retail sales to shore up Toronto's fiscal health.
Councillors on the city's budget committee were briefed this week by staff on eight measures that could raise hundreds of millions of dollars. And with the city facing perennial budget shortfalls, which have only grown worse since the COVID-19 pandemic, Coun. Chris Moise urged his fellow councillors to ask staff to study some of the measures in depth.
Waiting for provincial and federal bailouts to balance the budget every year isn't sustainable, he said.
"If we continue down this path, the same things will continue," he said.
"What's the definition of insanity, doing the same thing over and over again and expecting different results. And so, in my mind, what we continue to do is somewhat insane."
Moise said he will ask his fellow councillors to endorse a request to city staff for further study of a parking lot levy. Consultants have estimated that fee could raise hundreds of millions for the city each year. His request is expected to come before council at its Feb. 7 meeting.
Earlier this week, staff delivered briefing notes on taxes and fees in response to councillor requests, culling much of the information from past reports to council.
Those notes say an alcohol tax could raise between $21 million to $151 million a year. An entertainment and amusement tax on entry fees to places like amusement parks and movie theatres could raise $4 million to $35 million annually.
Resurrecting the vehicle registration tax on licence-plate renewals, which was scrapped by council under former mayor Rob Ford, would raise between $18 to $94 million a year. Congestion pricing set at $5 to $20 a day could generate between $89 million to $377 million annually.
A municipal sales tax set at one per cent on some goods and services could raise $360 million a year.
A personal municipal income tax would raise approximately $580 million a year if it was set at one per cent on the employment income of city residents. It could raise $926 million a year by putting a levy on taxable income.
And a commercial parking levy on city-wide lots is projected to raise between $171 to $535 million a year.
City staff cautioned that much of the information used to supply those figures dates back to a 2016 report from consulting firm KPMG. Many of those same taxes and fees require millions in administrative costs and special permission from the province or federal government to levy.
"I think we do mention it in the note that this data is outdated and that we do need to work with an external party that has expertise in these areas to help us create better forecasts," the city treasurer Heather Taylor told the committee this week.