Mississauga and the rest of the 905 have lower commercial taxes, but higher residential taxes than the 416.
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Toronto Massey Tower Condos | 206.95m | 60s | MOD Developments | Hariri Pontarini
Mississauga and the rest of the 905 have lower commercial taxes, but higher residential taxes than the 416.
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innsertnamehere
Superstar
Toronto actually has the lowest residential taxes there by a considerable margin, 0.7711981, compared to the next lowest which is Markham which is 0.905489.
AHK
Senior Member
And: Tell me, how does a city like Mississauga deal with so much development, have lower taxes than us, and continue to stay out of the red?
To address the second point first: A major reason why Mississauga has had its outstanding budget performance up to now has been due to the Development Charges levied against new construction in a rapidly developing suburb. In other words, Mississauga has been using one time capital levies to cover annual operating costs. Now that Mississauga is running short on raw land available for development, the development charges gravy train is coming to an end, and the city is going to have to find another way to manage its expenditures. Indicators of this transition are the move towards high rise development around the Mississauga City Centre, and a much belated increase in support for transit.
Second point - relative taxes among the various jurisdictions in the GTA. Residential taxes are NOT lower in Toronto than in Markham or in any other of the area municipalities. Taxes are the result of tax rates (often referred to as Mil rates) times property assessments. Mil rates are lower in Toronto, but that is because property values, and as a result the associated assessments, are typically much higher. The amount of residential tax paid by two identical properties - same house on same size lot on similar residential streets - would be typically be higher in Toronto as even though the tax rate would be lower. The Toronto property's value and associated assessment would be much higher, leading to a greater amount of tax being paid.
Please - if someone feels that Toronto's taxes paid are lower than than in any of the suburbs - could we please exchange taxes on a comparable properties - I would happily pay your taxes for our condominium in the suburbs, based on a comparable property as outlined above, if you would pay mine.
taal
Senior Member
Completely wrong ... Markham's average property value in nearly the same as the city of Toronto. Toronto does have a lower residential tax rate.
People always conviently forget how cheap some of the housing in parts of Scarborough / North York / ...
But your bang on with development fees, they're magnitudes times higher in Mississauga and other parts of the 905.
But unfortunately the commerical tax rate different is a major impeding factor on office development in the outer 416.
People always conviently forget how cheap some of the housing in parts of Scarborough / North York / ...
But your bang on with development fees, they're magnitudes times higher in Mississauga and other parts of the 905.
But unfortunately the commerical tax rate different is a major impeding factor on office development in the outer 416.
taal
Senior Member
Another thing, many 905 communities take in huge amounts of money due to development fees, wheras in Toronto there are a lot less developments and fees overall (proportionally).
Its not very fair to compare Toronto to other suburbs until they are all built out and on equal playing grounds.
Its not very fair to compare Toronto to other suburbs until they are all built out and on equal playing grounds.
AHK
Senior Member
'Comparable house on comparable lot on comparable street'. A lot of Toronto's housing stock is much older, and on much smaller lots, than equivalent housing in Markham. Averages are a superficial and often misleading way to do summary level comparisons of data which includes numerous diverse data points.
Big Daddy
Senior Member
This project didn’t get this far along without a great deal of involvement from the city - so clearly there is considerable negotiating going on in the background. One way or another this project will get approved and move forward.
As far as the developer "breaking all the rules", how many projects have been approved during this "boom" that haven't applied for and received substantial amendments - or received them from the OMB? The “rules” are apparently just guidelines - why wouldn't you push the envelope? All the big projects that are under construction did. If you don't, you’re probably leaving something on the table.
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taal
Senior Member
You have a point but I still disagree ; - ). Markham isn't known for huge lots, and I'd say many are comparable to parts of Scarborough and Markham. To take it further, many new housing developments in Markham actually have smaller lots (less then a typical outer new Toronto suburb).
Mr.Tang
Active Member
It seems ironic that Toronto which wants more business has such high commercial taxes, but is also a city which obviously hardly needs to incentivise more people moving into the city but has such low residential taxes. But residents vote with ballots and businesses with their feet.
taal
Senior Member
Yes exactly that's the problem all communities face ... its much easier to raise commercial taxes for that reason alone ...
ThomasJ
Active Member
Done.
http://www.urbantoronto.ca/news/2013/02/massey-tower-brushes-against-resistance-approvals-process
That should give you an overview of what's going on with Massey Tower.
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http://www.urbantoronto.ca/news/2013/02/massey-tower-brushes-against-resistance-approvals-process
That should give you an overview of what's going on with Massey Tower.
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…oh, and by the way: a number of Toronto Councillors read UT stories, so if you're interested in seeing this tower go through, a comment left at the bottom of the story page may have some influence.
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greenleaf
Senior Member
I wonder why this didn't go through "Without Recommendations"? Or is that a bad precedent for planning decisions?
Big Daddy
Senior Member
Nice, very well researched and written. Clears up a loyt of questions.
I don't believe planning is being difficulte per se - they are simply letting council know it is their decision to make as the current "rules" won't allow it. Council will have to weigh the benefits vs the potential problems (setting prcedence) when they vote tomorrow.