House dreams town sour
Toronto homeowners are facing a steep increase in their property taxes this year, as the city tries to balance its budget amid a $1.8 billion shortfall. The increase could be between 10-15%
The proposed 2024 budget, which will be presented to the budget committee on Wednesday, includes a 10.5 per cent property tax hike, consisting of a nine per cent increase to the base rate and a 1.5 per cent increase to the City Building Fund, a levy that supports capital projects such as transit and housing.
This is the largest single-year increase since amalgamation in 1998, and it means that the average household will pay $30 more per month, according to budget chief Shelley Carroll. Carroll said the hike is necessary to protect frontline services and invest in transit, housing and safety, which are the priorities of Toronto residents.
She also said the city has found over $600 million in cost savings and secured a $400 million deal from the province to help with the budget gap.
However, the city is still waiting for the federal government to provide $250 million to support the refugees in Toronto’s shelter system, which accounts for about 4,300 shelter beds.
If the federal government does not deliver the funding by Jan. 26, Carroll said she will have to propose an additional six per cent levy, which would bring the total property tax increase to 16.5 per cent.
The budget launch on Wednesday marks the beginning of the process and there will be opportunities for the public to provide their feedback, including a series of telephone town halls with Mayor Olivia Chow. The final budget will be brought to the city council for approval on Feb. 1.
Toronto landlords are already scratching their heads.
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