Torontonians could pay average of $141 more on their property tax bill this year

Torontonians could see a significant property tax hike for the first time in years as city staff presented a proposed budget including a 4.4 per cent total residential increase. 

That translates, city staff say, to about $141 more for the average Toronto household, according to the budget documents.

The 4.4 per cent figure is a combined total of a 2.9 per cent property tax increase and a 1.5 per cent increase to the city building fund, which is ear-marked for building transit and housing.  

Small businesses, however, will catch a small break amid the COVID-19 pandemic. Their taxes will go down by 15 per cent in 2022, staff say, in order to support the city's economic recovery.

As one slide in the city's presentation clearly states: the "2022 budget remains a COVID-19 budget."

In 2020, the city faced a $1.7-billion financial impact related to the pandemic. That dropped to $1.6 billion in 2021 and now $1.4 billion in 2022, but the city's still seeing reduced revenue (for example, the loss of many transit fares) while also ramping up spending on public health.

The new budget was tabled Thursday morning, kicking off a weeks-long process that's set to be finalized with a council vote in mid-February. Members of the public will be able to speak at meetings on Jan. 24 and 25 or send written responses to the city or their local councillor. 

Mayor John Tory, who has campaigned and won the mayoralty twice on the promise of holding property tax at the rate of inflation, said the pandemic is still putting a financial burden on the city.

"I know we all hoped we would be in a much better place by 2022 but Omicron has made things more challenging yet again," he said in a statement. 

"This is a responsible budget that will ensure Toronto gets through the Omicron surge and ultimately through this pandemic and comes back stronger than ever."

Toronto has lower property taxes than to most other municipalities in the GTHA. The city has instead balanced its books thanks to proceeds from the Municipal Land Transfer Tax, which has brought in huge amounts of money due to the booming real estate market.

Frank Clayton, a senior research fellow at the Centre for Urban Research and Development at Ryerson University, said taxing less would likely force the city to lay off workers and reduce services, which city staff say isn't the goal.

"I don't think the tax rate that's being proposed is out of line," Clayton told CBC News.

But some are still criticizing the proposed increase, especially as inflation drives up the cost of living.