Toronto city council recently voted in favour of two new controversial and much debated taxes. Originally, council was set to vote on these taxes this past July, but narrowly voted to wait until after the Ontario provincial elections that took place on Oct. 10.
The first is a vehicle registration tax. People with a car registered in the city of Toronto will now have to pay an annual tax of $60 and motorcycle owners, $30. Toronto mayor David Miller has announced he expects the tax will provide the city with an additional $56 million per year. To put this tax into perspective, if a student purchases a car and keeps it for five years, then that will cost them a total of $300. No other city in Ontario currently has such a tax in place.
The second, a land transfer tax on any sale of land, including houses, is more controversial than the first. First time home owners are exempt from paying the tax on the first $400,000 of their new home.
The mayor’s office caused a furor earlier this year by announcing sweeping cuts to city services, including libraries and community centres, if the taxes weren’t approved. In the wake of these cuts, the TTC announced a hike in the cost of its metropass to $109. TTC authorities have not said whether they will cancel the fare hike now that city council has passes the new taxes.
