Toronto is proposing a whopping 10.5 per cent increase in property taxes this year as it is facing a nearly $1.8 billion deficit.
The city’s proposed 2024 budget was released Wednesday morning at a budget committee meeting.
This marks Mayor Olivia Chow’s first proposed budget since she became mayor in July 2023.
The budget includes a 9.5 per cent increase to the residential tax and a 1.5 hike to the building levy, resulting in a 10.5 per cent annual increase for property owners.
The proposed property tax hike will result in a $321 annual increase for homeowners this year, which equates to a monthly bump of $26.75.
Meanwhile, the increase to the city building levy will cause a $53 annual increase this year, resulting in a monthly increase of $4.42.
“We’re building a financially stable and sustainable future for Toronto to ensure the 2024 Budget maintains frontline services for Torontonians and makes smart investments in housing, transit and community safety. However, we can not do this alone, so I will build on the success of our Ontario-Toronto New Deal and continue to advocate for federal funding, especially when it comes to their area of responsibility: refugee support,” Mayor Olivia Chow said in a statement.
In the budget presentation today, which was prepared by City Manager Paul Johnson and Chief Financial Officer and Treasurer Stephen Conforti, it states that the goal of the budget is to “get City back on track to a financially stable and sustainable future.”
The 2024 operating budget is $17 billion, while the 2024-2033 capital budget and plan is $49.8 billion.
The biggest share of this year’s operating budget is cost shared social programs at 28 per cent, followed by transit at 15 per cent and rate programs at 13 per cent.
The city’s deficit of $1.776 billion is primarily due to transit and shelter services. If the city were to pay off the shortfall this year it says it would have to raise property taxes by a significant 42 per cent.
In addition to raising property taxes, the city is expecting to have access to a federal funding program that will provide full reimbursement of costs associated with its refugee claimant response that is currently estimated at $250 million for the year.
Among possible property tax increases, residents will also see a three per cent increase to water and wastewater consumption rates ($30/year based on 230 cubic metres of water consumed) and a three per cent increase to solid waste management services rates and fees ($9-$16 depending on bin size).
RESIDENTS REACT TO PROPOSED HIKE TO PROPERTY TAXES
Torontonians were quick to react to the possible double-digit increase in property taxes online with skepticism.
“No govt should be allowed to increase taxes to this degree in one shot. It’s obscene,” another person wrote.
“Wow. Just when Toronto was not affordable it gets better.”
“So we pay more while feeling unsafe and being attacked in our own city. Awesome,” one user on X wrote.
Meanwhile, others acknowledge that the tax hike is needed to combat the massive deficit.
“Property tax rates in Toronto have been too low for too long. The rest of the province has had to subsidize the city’s services because of this. Raising property taxes is needed to fund services. This will also push some over-leveraged investors out of the real estate market,” a user on X wrote.
“Long overdue! Taxes in Toronto have been artificially low for years. Now this deficit has to be eliminated and so taxes must go up!” another person wrote.
And some are blaming former mayor John Tory and Ontario Premier Doug Ford for the inevitable rise in taxes.
“Thanks Rob Ford and John Tory for letting it get this way. Chow’s cleaning up their mess,” one X user said.
“Before everyone starts blasting Olivia…! PS – Toronto has been underpaying taxes for years. This is what the Tories do….John Tory ran the city into the basement by ignoring it for years,” another user on X said.
PUBLIC CAN WEIGH IN ON BUDGET
Torontonians can share their feedback on the proposed budget in one of three upcoming town halls:
- Tuesday, January 16, 7 to 8:30 p.m.
- Wednesday, January 17, 7 to 8:30 p.m.
- Thursday, January 18, 7 to 8:30 p.m.
To participate, residents and businesses can call 1-833-490-0778 at the time of the town hall.
The budget committee will also hear from speakers in person and by video on Jan. 22 and 23. More details can be found here.
After these meetings with the public, the budget committee with wrap up its meetings and the finalized budget will be presented by city council in February.
