unimaginative2
Senior Member
It's time to pay the piper, Toronto
TENILLE BONOGUORE
October 27, 2007
Contrary to the pain you may be feeling in your pocket, Toronto actually became a bit of a bargain in 2007. Last year, Canada's most expensive metropolis was the 47th-costliest city on the planet in which to live, according to the Mercer Human Resources' annual cost-of-living survey. By the middle of this year, though, T.O. had tumbled in world rankings, coming up for duty at No. 82. That may earn envious glances from people trying to make ends meet in the world's most expensive locales - Moscow, London, Seoul and Tokyo.
But for those who tally daily costs in Toronto Transit Commission tokens, the pocket is about to get a nasty hit.
This week, the cost of living fought back.
TTC FARE HIKE
The monthly Metropass broke the $100 barrier for the first time this week, rising to $109. The cash fare will remain $2.75. (Tokens and tickets will go up 15 cents to $2.25 from $2.10 starting Nov. 4.)
The higher Metropass price will probably trigger a new round of commuter crankiness, but transit activist Steve Munro says it won't drive people away from the TTC. For many, a 15-cent token hike is easier to swallow than switching modes of transportation.
"There's always people who are really, really close to the wire, economically, but I don't think the majority of TTC riders are in that situation," Mr. Munro says. "We're not talking major belt-tightening here."
NEW CAR-OWNERSHIP TAX
Car owners already pay the province $74 a year to register a vehicle. Toronto will almost double that, with its own $60 car-ownership tax and $30 motorcycle-ownership tax, approved by council to be implemented in the fall of 2008. Citywide, that amounts to $20-million next year and $55-million annually after that.
PROPERTY TAXES HIKE
Mayor David Miller seems confident that property taxes will rise 3 to 4 per cent next year, continuing the usual rate of increase and bringing in $60-million to $80-million.
But Ward 5 Councillor Peter Milczyn says either the mayor has something up his sleeve, or his figures are way off. "He must know something I don't know," Mr. Milczyn says. "I expect the property-tax increase to be somewhere in the range of 6 or 7 per cent. I hope it isn't, but that's the realistic figure to expect."
Toronto residents will probably find out which of those rises is heading their way around the new year.
LAND-TRANSFER TAX ON THE WAY
The municipal land-transfer tax just approved by council on Monday will slap a graduated amount of tax on every property purchase in Toronto when it comes into force on Feb. 1 - unless you're a first-time home buyer with tastes in the sub-$400,000 realty range, when rebates will cover you.
Buyers will probably react to the new tax by lowering their offers, leaving sellers to swallow the bitter taxation pill through reduced prices. "I bet you'll see lower prices right away," says William Strange, a real-estate professor at the Rotman School of Management. And, the brutal irony is, it's people leaving the city who will end up paying for that extra fee to cover city services, Prof. Strange says. "Some people will leave, for sure. Right now, there are some people who are pretty much indifferent between living in north Toronto or Markham," he says.
The tax will bring in $155-million next year, rising to about $200-million in 2009 and $300-million to $325-million from 2011 onward.
NO RELIEF IN THE SHOPPING CART
The buoyant Canadian currency isn't making much of an impact on living expenses. Federal Finance Minister Jim Flaherty did his best this week to push retailers into action, but shoppers are facing a double blow: Pricing starts out higher in Canada, because of higher duties, taxes, transportation costs, bilingual labelling and other regulations, and levels are set about nine months in advance. That means any advantage for shoppers is still six to 10 months away.
TENILLE BONOGUORE
October 27, 2007
Contrary to the pain you may be feeling in your pocket, Toronto actually became a bit of a bargain in 2007. Last year, Canada's most expensive metropolis was the 47th-costliest city on the planet in which to live, according to the Mercer Human Resources' annual cost-of-living survey. By the middle of this year, though, T.O. had tumbled in world rankings, coming up for duty at No. 82. That may earn envious glances from people trying to make ends meet in the world's most expensive locales - Moscow, London, Seoul and Tokyo.
But for those who tally daily costs in Toronto Transit Commission tokens, the pocket is about to get a nasty hit.
This week, the cost of living fought back.
TTC FARE HIKE
The monthly Metropass broke the $100 barrier for the first time this week, rising to $109. The cash fare will remain $2.75. (Tokens and tickets will go up 15 cents to $2.25 from $2.10 starting Nov. 4.)
The higher Metropass price will probably trigger a new round of commuter crankiness, but transit activist Steve Munro says it won't drive people away from the TTC. For many, a 15-cent token hike is easier to swallow than switching modes of transportation.
"There's always people who are really, really close to the wire, economically, but I don't think the majority of TTC riders are in that situation," Mr. Munro says. "We're not talking major belt-tightening here."
NEW CAR-OWNERSHIP TAX
Car owners already pay the province $74 a year to register a vehicle. Toronto will almost double that, with its own $60 car-ownership tax and $30 motorcycle-ownership tax, approved by council to be implemented in the fall of 2008. Citywide, that amounts to $20-million next year and $55-million annually after that.
PROPERTY TAXES HIKE
Mayor David Miller seems confident that property taxes will rise 3 to 4 per cent next year, continuing the usual rate of increase and bringing in $60-million to $80-million.
But Ward 5 Councillor Peter Milczyn says either the mayor has something up his sleeve, or his figures are way off. "He must know something I don't know," Mr. Milczyn says. "I expect the property-tax increase to be somewhere in the range of 6 or 7 per cent. I hope it isn't, but that's the realistic figure to expect."
Toronto residents will probably find out which of those rises is heading their way around the new year.
LAND-TRANSFER TAX ON THE WAY
The municipal land-transfer tax just approved by council on Monday will slap a graduated amount of tax on every property purchase in Toronto when it comes into force on Feb. 1 - unless you're a first-time home buyer with tastes in the sub-$400,000 realty range, when rebates will cover you.
Buyers will probably react to the new tax by lowering their offers, leaving sellers to swallow the bitter taxation pill through reduced prices. "I bet you'll see lower prices right away," says William Strange, a real-estate professor at the Rotman School of Management. And, the brutal irony is, it's people leaving the city who will end up paying for that extra fee to cover city services, Prof. Strange says. "Some people will leave, for sure. Right now, there are some people who are pretty much indifferent between living in north Toronto or Markham," he says.
The tax will bring in $155-million next year, rising to about $200-million in 2009 and $300-million to $325-million from 2011 onward.
NO RELIEF IN THE SHOPPING CART
The buoyant Canadian currency isn't making much of an impact on living expenses. Federal Finance Minister Jim Flaherty did his best this week to push retailers into action, but shoppers are facing a double blow: Pricing starts out higher in Canada, because of higher duties, taxes, transportation costs, bilingual labelling and other regulations, and levels are set about nine months in advance. That means any advantage for shoppers is still six to 10 months away.