Toronto Property Tax Hike on the Table for New Budget
Owning property in Canada’s largest city may become more expensive than it already is thanks to proposed property tax hikes in this year’s budget. And experts believe this is only the beginning.
With one of the hottest housing markets in the country, Toronto’s property values are stretching the budgets of the hundreds of thousands of property owners in the city, but if you own or are thinking about owning a home in Toronto, prepare to stretch a little further.
While Mayor John Tory and his executive committee are only proposing a small increase of about 1.9 per cent to bring the rate up to 2.69 per cent, experts on city planning agree that the current strategy is not sustainable for the economic development of the city.
While the tax hike will generate millions of extra dollars to go towards improved services for the poor and various enhancements to infrastructure, the city is dipping too heavily into reserve funds says city planner Peter Wallace according to Inside Toronto.
The city will need to find additional revenue tools as well as look for ways to cut expenses and operate more efficiently going forward. There’s also a strong likelihood that property taxes will also increase in the coming years.
If the city cannot generate the revenue it needs Toronto’s growth and status as a world class city could start to falter and services citizens have grown to rely on may get cut.
The city’s leadership is no doubt sensitive to affordability and the chance of a drastic tax increase is low, but it’s important to factor the monthly cost of home ownership before you even start looking at houses. Property taxes can be reassessed every year and if you find yourself stretched to handle monthly expenses like utilities, home insurance, and of course the cost of food and more be aware that you put yourself in danger of falling into debt as the cost of home ownership increases.