Property taxes will increase by two per cent in Toronto in 2017, Toronto Council has decided.
Council voted 35-8 February 15, to set the property tax rate in the afternoon of the first day of debate on Toronto’s 2017 operating and capital budget. The rate, which is near the rate of inflation, was a major objective of Mayor John Tory in the third year of his four-year mandate.
Council considered two other plans. One put forward by York West Councillor Giorgio Mammoliti, to freeze property taxes at 2016 rates. Another, by Parkdale-High Park Councillor Gord Perks, would hike taxes higher than inflation, at 4.26 per cent — a move that would raise over $4.15 million more for city programs.
Neither plan gathered much support. Perks’ plan received 10 votes on the 45 member council, and Mammoliti’s only two: himself and Etobicoke Centre Councillor Stephen Holyday.
In a statement following the vote, Tory said that debate revealed his inflationary tax increase plan to be the best.
“This tax rate has been attacked by those on the political left and those on the fringes of Council’s right,” he said in the statement. “That tells me it’s just right — it is a moderate tax rate that moves the city not left, not right but forward.”
On the floor of council, Tory compared Perks and Mammoliti to the Road Runner and Wiley E. Coyote. Perks shouted out that he would prefer to be the Road Runner in that scenario — a cartoon character who avoids death at the hands of a slow-witted coyote.
Perks argued that his property tax increase would be affordable to homeowners, and he rejected the arguments of some that people who owned homes valued at more than a million dollars were facing financial hardship.
“I do not agree that people who own their own homes are the poor in Toronto,” he said.
Mammoliti, however, argued that changes to homes’ assessment under the current value assessment system could lead to tax increases much higher than two per cent.
“When people open their bill it will be more than two per cent,” he said following the vote. “Most people are going to see an almost five per cent increase or close to 13 per cent when CVA has changed. They’ve sold it to council with an inflation argument at two per cent. I would warn the public that the Tory taxes will affect households.”
Budget chief Gary Crawford said that there are indeed other increases that residents will see in this budget, including new user fees, a .5 per cent ‘city building’ levy for infrastructure, and other charges. In total, he estimated the impact on an average household would be $160.
He said that was why council needs to control the property tax portion.“It was critical to keep that below two per cent,” he said.
Council continued to debate details in the budget Wednesday evening, with the issue expected to go into Thursday February 16.