A Bit More Detail

Assorted Personal Notations, Essays, and Other Jottings

[URBAN NOTE] “Property taxes in Brampton, Mississauga soar above Toronto’s”

The Toronto Star‘s San Grewal notes the yawning gap in property taxes between Toronto and its western neighbours of Mississauga and Brampton. One implicit argument here is that Toronto could raise them, too, giving it more income–enough to, say, adequately fund mass transit.

The already glaring gap between property taxes in Brampton and Mississauga compared to Toronto, is getting even wider.

The GTA’s second and third largest cities just passed their respective budgets for 2017 last week, and things continue to look grim for homeowners, with tax hikes above inflation and questions about how Mississauga and Brampton will manage the coming onslaught of infrastructure needs, many of which are already being put off.

With the latest budget increases, in 2017 a Brampton home with an assessed value of $500,000 will cost owners about $5,278 in property taxes; in Mississauga a home with the same value will have about $4,498 in property taxes; and in Toronto a home assessed at $500,000 will cost you $3,495 in property taxes (which includes $940 for the education portion and $15 for the transit expansion levy.)

The overall property tax increase Mississauga homeowners will see in 2017 is 2.9 per cent, but this includes the Region of Peel share and the provincial education share. The recently approved increase for just the city’s 2017 portion of the tax bill, which is blended into the overall property tax, is 5.7 per cent.

Mississauga Mayor Bonnie Crombie said it’s unfair to compare her city’s property tax rate to Toronto’s because the two are not operating on an equal footing.

“We cannot build a city on the property tax alone,” Crombie told the Star Monday. “Mississauga should not be treated unequally in relation to Toronto.”

She said Mississauga, like most other Ontario municipalities is too heavily reliant on the property tax base as a revenue tool, while under the provincial City of Toronto Act, Ontario’s largest city is the only one with the option to use special revenue tools such as: a municipal land transfer tax, a sign tax, a personal vehicle tax, an alcohol tax, a tobacco tax, an amusement tax, a parking tax and road pricing (tolls or a congestion charge).

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Written by Randy McDonald

December 21, 2016 at 9:45 pm

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