Feb. 24, 2004 - Toronto Threatens its One Rising Revenue Source
January 17, 2005
February 24, 2004
Toronto Threatens its One Rising Revenue Source
To view PDF report “Reaping Residential Revenue”, please click here .
TORONTO – A report released today by the Greater Toronto Home Builders’ Association entitled “Reaping Residential Revenue” documents how much new homes and condominiums have generated in tax revenue for the city of Toronto since amalgamation.
The report, by housing economist Will Dunning, notes that since 1998, 74,587 units of new housing have been completed or are pending in Toronto. This represents $19.66 billion in added assessment value, and most importantly $194.9 million in annual realty taxes. Of this tax total, $129.1 million accrues directly to the city and $65.9 million to the province in education funding.
“New residential construction is the one segment of the economy that has been relatively strong,” stated GTHBA first vice president Julie Di Lorenzo. “Just look at all the construction cranes. Our industry is generating jobs and tax revenue for all levels of government. Young families and first time buyers are at the limit of affordability and this could cause a slowdown and inhibit access to affordable ownership.”
The city is now set to threaten this rising tax base by tripling its current development charge. GTHBA wonders how such a policy will promote smart growth or intensification. At the very time the province is sending a message that it wants to curtail development in the “905”, the city is now sending a message that it wants to curtail revenue from the one source that is adding increased revenue to its bottom line.
“This proposal will not meet the province’s objective of intensification and it will not meet the city’s objective of affordable housing. It is a step in the wrong direction”, added Di Lorenzo. It is calculated that the city’s proposed development charge increase, coupled with higher parkland contributions in its new Official Plan equals a deposit for most first-time home buyers.
Note to editors: Please click the immediate link to view a PDF copy of the report “Reaping Residential Revenue”
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