Property taxes and its impact in Greater Toronto area

Property Tax changes and Impact in Greater Toronto area

vNew reductions in taxes that local governments can charge to homebuilders could have a significant impact on property taxes in parts of the GTA, a new CBC News study has found. One municipality says property taxes could more than double.

Late last year, the provincial government passed Bill 23, the Faster Homes Act, which would eliminate some of the fees municipalities pay developers for the right to build certain types of homes — money municipalities say they hope to provide, among other things. things roads and sewers, public transport, parks and libraries. On December 15 and 16, CBC News asked all 25 municipalities in the Greater Toronto Area how much money they would lose if they didn't collect development fees and how much they thought they should raise in property taxes in the near future. a year make ends meet.

The bulk of those municipalities say it's still unclear how they'll contend with the dramatic loss of revenue.

"Obviously we're in a bit of a bind," Aurora Mayor Tom Mrakas said. "That's what I'm hearing from other municipalities too."

He said he is considering a possible six percent property tax increase next year or service cuts to offset a projected $29 million revenue shortfall over the next 10 years.

Seven GTA municipalities surveyed either did not respond or sent automated responses promising follow-ups that have not yet arrived. Another 10 people told CBC News they were running the numbers and had not yet decided on a possible tax increase. But the other eight — Aurora, Brampton, East Gwillimbury, Mississauga, Newmarket, Toronto, Vaughan and Whitchurch-Stoufville — all provided detailed estimates of the losses they face and the tax increases they are considering to make up the difference. Tax increases ranged from more than 100 percent in East Gwillimbury to 5-15 percent in Newmarket.

When the Conservative government introduced the bill last month, it said it aimed to help build 1.5 million new homes over the next 10 years. By allowing municipalities to charge development fees for affordable housing — those that are 80 percent of the market average or less — the province believes it can encourage developers to build more housing at lower prices for buyers.

Survey responses indicated that while East Gwillimbury residents may suffer the most, other municipalities are also predicting sharp increases: The City of Vaughan projects an annual loss of $169 million to $174 million and a property tax increase of 77 to 88 percent. Whitchurch-Stouffville projects a loss of $19.6 million over five years and a total tax increase of 52.3 percent over four years, starting with a 20.3 percent increase in 2024.

According to staff, Newmarket residents can expect their property taxes to increase from five percent to 15 percent. Mississauga expects to lose about $1 billion in revenue, forcing an eight to 10 percent increase in property taxes. Staff there say that adds about $500 to the average tax bill for a house worth about $730,000 and $180 to residents' water bills. Brampton staff say Bill 23 will cost the city about $440 million in lost development costs and a property tax increase of at least nine percent. Both Aurora and Toronto can expect property tax increases of about six percent, according to municipal officials.

Across the province, the Association of Municipalities of Ontario said changes to development fees will leave communities $5 billion short, with taxpayers footing the bill either through higher property taxes or cuts to services.