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View Full Version : Equivelent of 48% percent tax increase in 4 years...



js97
2010-Apr-08, 12:01
http://www.torontosun.com/news/torontoandgta/2010/04/07/13502391.html

curious as to why the sun is the only one reporting this

and that figure of 48% is the result of compounded over the next four years...

also, if you're renting, it can be passed down directly to the renter.


http://www.ontariotenants.ca/law/law.phtml (#Q14)




Torontonians are facing average annual property tax increases of more than 10% for four years in a row unless the city can find new revenue sources.

Without asset sales or a significant increase in provincial funding, the tax bill could leap by about 12.5% in 2011, 11% in 2012, 9.75% in 2013 and 8.25% in 2014, city staff told the executive committee Wednesday.

The committee approved a much more modest 2.9% increase on residential property taxes for this year, adding $67.69 to the average home assessed at $407,374 and bringing the 2010 tax bill to $2,402.

Mayor David Miller said he feels confident the Dalton McGuinty government will follow through with election promises to upload 50% of the TTC’s operating costs, despite its recent decision to delay half the promised funding for Transit City.

“My confidence in the government was shaken by their position on Transit City,” Miller said. “Am I concerned (about TTC operating funding)? Yes. But I mean they’ve made a clear commitment repeatedly to negotiate this ... I believe on this one that they’ll honour their commitment and it will put this city in good shape for a long time.”

Toronto is also looking for the province to upload social housing costs, and needs the federal government to give it one cent of the GST.

None of the items requested by the city are in the provincial budget.

While the province has agreed to talks with Toronto regarding its TTC operating budget, there is no deadline for an agreement.

McGuinty has said he does not have the money right now.

Councillor Doug Holyday said the city is budgeting based on wishful thinking.

“It counts on too many things that are not likely to happen,” he said.

Without new funding sources or asset sales, the following four years of tax increases could boost the average Toronto homeowner’s bill to more than $3,500 by 2014.

However, Toronto’s residential property taxes still tend to be lower than those in neighbouring communities.

Oakville residents, for instance, paid an average of $3,461 in property taxes compared with Toronto’s $2,334 in 2009. Mississauga homeowners forked over $2,559 and Oshawa ratepayers paid $3,314 on average in 2009.

Councillor Giorgio Mammoliti asked the executive committee to support him in a motion that would have exempted seniors from the Toronto vehicle tax, but his colleagues turned it down flat.

Miller said the budget already provides for low-income seniors to have their property taxes waived or deferred.

The current city council is leaving the budget in good shape overall, and with a surplus that likely will be applied in part to next year’s budget, he said. That will help the future council keep property taxes low.

“Sure there are some risks, no question about that ... but I’m optimistic and I think Torontonians should be, too,” Miller said.

GraphicMatt
2010-Apr-08, 13:06
http://www.torontosun.com/news/torontoandgta/2010/04/07/13502391.html

curious as to why the sun is the only one reporting this

and that figure of 48% is the result of compounded over the next four years...

also, if you're renting, it can be passed down directly to the renter.


http://www.ontariotenants.ca/law/law.phtml (#Q14)

What struck me: how different would the reaction from the public be if property tax increases were reported using real (average) dollar figures. Do Toronto residents really get that this year's tax increase amounts to an extra five dollars and sixty-four cents per month?

Glen
2010-Apr-08, 13:41
This really shouldn't be news though. The short term gain of having the lowest residential taxes and the highest non residential have played themselves out and can be concealed no longer. As Glen Murray said "the assessment base matters". I warned about this on my blog 2 1/2 years ago…..


It seems that higher residential property taxes are inevitable, the only choice seems to be do they come earlier while keeping jobs or later when they are gone?

http://southofsteeles.blogspot.com/2007/09/what-did-we-miss.html

Jonny5
2010-Apr-08, 14:29
Last night, I heard Hazel McCallion wheeze that the $130-something-million gift from the higher-level-government Gods wasn't sufficient to address the "Municipal Infrastructure Backlog", now standing in the hundreds of billions. I couldn't help but chuckle that the city that will never raise taxes or take on debt now has no money to pay for the basic maintenance of everything and anything they built. Yet it's still considered a shining beacon for all municipal bureaucracies of Canada. It'll be fun when she finally ascends to the great council chamber in the sky and an election is fought over a 200% vs. a 300% property tax hike, or just letting everything go to Hell. I'm betting Hell will win. Slumasauga.

(NB: The above statement of opinion has been embellished for dramatic effect due to ingestion of intoxicating liquids by the author, but is still based in truth.)

EDIT: I should be more careful with my libel. Taxes and user fees have been going up sharply in Mississauga. Unfortuntaely, no media outlet reports this and no one in the city ever reads their tax bill.

Towered
2010-Apr-08, 15:40
Hazel's secret weapon is that there's no daily newspaper in Mississauga to scrutinize and publicize the goings-on at their City Hall.

Jonny5
2010-Apr-08, 16:34
Hazel's secret weapon is that there's no daily newspaper in Mississauga to scrutinize and publicize the goings-on at their City Hall.

Somewhere, the editor of The Mississauga News just poured himself a glass of whisky and shed a tear.

js97
2010-Apr-08, 16:43
that's some good cool-aid you guys are drinking...

TrickyRicky
2010-Apr-08, 19:19
GraphicMatt,

I've expressed my opinion in other threads that I approve of costs rising and shifting towards pay for use philosophy. I'm curious however if your comment imples that you believe property tax increases are not a serious concern for Toronto residents? When you expand the discussion to fixed costs of property ownership (some of which also are paid by tenants but "hidden" in their rental rates" I think that the cost of living in Toronto is increasing at a phenomenal rate. Fixed costs of property ownership include:

-Property Tax
-Hydro
-Water
-Gas
-Home Insurance
-Garbage

Many of these fixed cost items are increasing at double digit rates every year. In my own experience 2008-2009 saw an annual fixed cost increase of 13%. At this rate the cost of living for me in Toronto will double every 5.5 years. So for me it's not an additional 5 dollars and 64 cents per month per year its around 90 dollars per month per year!

Hmmm, I wonder if the people who put 5% down on their 35 year mortgages factored in the possibility of double digit annual increases in their fixed costs of property ownership. And if you are renting thank your landlord, because she's currently sheltering you from these fixed cost increases due to your rent control.

nfitz
2010-Apr-11, 18:58
Perhaps there is little reaction because these doom and gloom stories have been floating around for decades - but never seem to come to reality. Council is estimating much lower increases; their other recent forecasts have generally been accurate, and they don't predict this.