‘We are asking people to pay more’: Tory proposes sizeable property tax hike

Mayor John Tory is proposing a sizeable property tax hike for homeowners as part of Toronto’s 2023 budget.

Tory revealed the 5.5 per cent property tax increase, as part of the proposed $16.6-billion operating budget, while speaking to reporters at city hall on Tuesday morning.

“We are asking people to pay more,” he said. “That is below Toronto’s present 6.6 per cent inflation rate, but I recognize it is nonetheless a significant increase.”

Tory has maintained he would keep property taxes at or below the rate of inflation, but with inflation soaring it gives the mayor more wiggle room to hike rates.

“I wish it could be lower,” he said. “I know that any increased cost right now is hard for people to bear.”

Including the city’s 1.5 per cent building levy, the increase is seven per cent and will work out to $233 extra per year for the average Toronto household.

What qualifies as an average Toronto household you ask? pic.twitter.com/5VfHnZXS7g

— Momin Qureshi (@MominYQureshi) January 10, 2023

The tax increase for multi-residential dwellings will increase by half, or 2.75 per cent. If approved, the budget will also include a 2.75 per cent commercial property tax increase and a 5.5 per cent increase for industrial properties.

Tory is also proposing a three per cent increase for water, wastewater, and solid waste which will work out to a $34 to $45 increase per year for the average household.

Last year, the city’s property tax increase was 2.9 per cent after going up 0.7 per cent in 2021.

The mayor has pledged to not use his newly-bestowed ‘strong mayor’ powers to see the budget through and says he has already had conversations with other councillors about what could be done differently.

“In the course of those discussions with other councillors, they have made suggestions,” he said. “I am completely open to that.”

The 2023 budget proposal includes hundreds of millions in savings due to the large $1 billion hole left in the wake of the COVID-19 pandemic. Tory is still holding out hope that the provincial and federal governments could come to the rescue and help balance the books.

The TTC board approved a new operating budget for 2023 that includes a 10-cent fare hike and some service reductions. Critics have expressed concern that most riders will be paying more for less moving forward.

Toronto’s police board also unanimously approved a nearly $50-million increase to the force’s budget. The approval came despite an outcry from critics who said the money would be better invested in underfunded community services.

The complete 2023 spending document will be voted on by city council on Feb. 14.

With files from CityNews reporters Mark McAllister and Kevin Misener