After Toronto's Chinese-American mayor Zou Zhihui took office, the first budget broke the record, with a massive 10.5% increase in land tax, the largest tax increase in the city in years, and homeowners in the 416 area will cry for years to come.
Today, Jan. 10, budget director Shelley Carroll announced the proposed tax rate ahead of the budget committee meeting.
Toronto will raise property taxes by 10 percent this year, including a 9 percent increase in property taxes, and a 1.5 percent increase in the City Construction Fund.
According to the budget director, the sharp 10.5% tax increase is due to a budget gap of $1.8 billion due to chronic underspending on city services.
"I have a strong feeling that we can't go on like this. We need to get our city back on track," Carroll said.
The budget also includes an increase in police department funding, as well as a freeze on Toronto bus TTC fares in 2024.
The committee will hear more details from City staff this morning on the 2024 Operating Budget and the 2024 through 2033 Capital Budget and Plan.
According to the draft budget released today, Toronto will spend $17 billion in 2024.
Toronto has struggled to adjust its finances due to the losses caused by the COVID-19 pandemic and high inflation that has pushed up costs.
Recently, the City of Toronto achieved a huge financial victory in an agreement with the Ford government in Ontario that would put the Ontario government accountable for the DVP and Gardiner highways.
Carroll said the deal will save Toronto billions of dollars in the future and has already saved $400 million in 2024.
But Toronto still needs more help from other levels of government, especially with regard to refugee shelters and housing, she said.
Despite the provincial government's help, the City of Toronto's increased spending has widened the budget gap to $1.8 billion.
Each percentage point increase in land taxes will bring 42 million to Toronto.
Pictured: City of Toronto's Deficit Eradication Plan
Budget Officer Carroll said today that Toronto is still waiting for the federal government to provide the necessary $250 million to support refugees in Toronto's shelter system.
"We're doing everything we can to house more than 5,000 refugees and asylum seekers, but it's really the federal government's responsibility," Carroll explained. ”
If the federal government does not provide this funding, the City of Toronto will be forced to impose an additional 6% land tax as a result of federal influence.
Figure: If the federal government doesn't pay for it, refugee resettlement will have to increase homeowners' land taxes by 6%.
"This will be a direct blow to Toronto's wallets as federal policy, but it will be the only way we can avoid seeing the heartbreaking images of those refugees camping on the streets again because they can't get into our shelters. Because we've run out of resources. ”
She said the government had until Jan. 26 to make a decision before the additional tax could be introduced earlier.
"I sincerely hope that the Trudeau government will make a decision to take action in a short period of time. I'm optimistic. ”
Carroll said the 10.5 percent tax increase would cost an average of $30 more per month per family in Toronto, or $360 a year.
If you add in the 6% tax increase for refugees, Toronto homeowners are expected to pay more than $560 per household in 2024.
Ahead of the budget process, Chow said she would assess the city's needs before determining the tax rate.
The Toronto City Council will debate and vote on the budget in February.
It is already stretched, and Toronto now has the responsibility of hosting more refugees, providing housing, including renting hotels for refugees to live in, so this year, a large tax increase of 10.5%, if Trudeau does not give 250 million, Toronto will have to add another 6%, and the landlord will cry.