Toronto city council votes in favour of new revenue tools
CTV
City council has voted in favour of a number of revenue tools to help plug a billion-dollar budget hole.
City council has voted in favour of a number of revenue tools to help plug a billion-dollar budget hole.
The revenue tools, which were unanimously supported by Mayor Olivia Chow’s executive committee last month, and a push for more cash from Ottawa to deal with the refugee crisis were among the big ticket items on the agenda at this week’s meeting on Wednesday.
Councillors voted in favour of two revenue-generating initiatives: graduated increases to Municipal Land Transfer Tax on luxury homes worth $3 million and more, and the removal of a five dollar per hour cap for on-street parking. Councillors also approved further study of a commercial parking levy, a monthly mobile phone levy for 911 costs, and increasing the vacant home tax.
Councillors also approved to ask the province for permission to implement a municipal sales tax for goods and services sold in Toronto.
The new graduated land transfer tax increases would apply to high-value residential properties, including a 3.5 per cent tax for properties valued at between $3 million and $4 million, 4.5 per cent for properties worth $4 million to $5 million, 5.5 per cent for properties valued at between $5 million and $10 million, 6.5 per cent for homes worth $10 million to $20 million, and 7.5 per cent for all properties valued at over $20 million.
Beyond the immediate financial pressures faced by the municipality, Toronto’s city manager has warned that the city will see an expected budget shortfall of nearly $50-billion over the next 10 years.
Referencing the report on the city’s long-term financial strategy, Chow said there are two aspects to the plan.
