Budget committee lowers proposed property-tax hike to 2.25% at heated meeting
Posted January 8, 2014 7:22 am.
This article is more than 5 years old.
Mayor Rob Ford called the municipal land transfer tax (MLTT) gravy and called for it to be reduced during a budget committee meeting on Wednesday.
The committee was finalizing its 2014 capital and operating budgets before they go to council on Jan. 29.
“Not only do I want to get rid of [the MLTT], but it shouldn’t have been here in the first place,” Ford said.
“Some councillors want that money to keep spending and spending and spending. But the majority of taxpayers would rather have [it] in their pocket.”
The mayor had wanted a 10-per-cent cut in the MLTT to be included in the 2014 operating budget but the city said it would lose out on about $34.5 million, based on 2012 land transfer tax revenue figures.
Coun. Pam McConnell called Ford’s idea “foolish,” and Coun. Paula Fletcher said the tax was not “gravy” and goes toward tangible expenses, like TTC stations, the waterfront and child care. But she did concede the city had failed by not specifying what the taxes go toward.
“We need to tell people what we’re using their money for,” Fletcher said.
The committee voted 4-2 in favour of Coun. Michelle Berardinetti’s motion to reduce property tax to 2.25 per cent from 2.5 per cent — including a .5-per-cent levy for the Scarborough subway extension.
But it voted 4-2 against budget chair Frank Di Giorgio’s motion to reduce the land transfer tax.
Staff had recommended the 2.5-per-cent property tax hike — or $64 more per household — to balance the budget.
The committee also decided to use property taxes to start funding the High Park Zoo again and to standardize hours at library branches.
The meeting got heated when Coun. Janet Davis walked over to Coun. Doug Ford, leaned over and said something inaudible to everyone else in the room.
“I want an apology,” Ford said.
“She just came up and told me to keep my f—in’ mouth shut. That’s disgusting … You call yourself a lady? Give me a break.”
Davis apologized.
The $9.6-billion operating budget has a deficit of more than $200-million and an additional $43-million due to the provincial funding cuts that affect the city’s housing programs. And it must be balanced each year.
Click here to read the meeting agenda.
