Officials in Toronto are proposing several measures to tackle the budget crisis facing Canada’s largest city, including raising the land-transfer tax on high-value homes, increasing the vacant homes tax from one to three percent, and a new commercial parking levy.
A new report from Toronto’s city manager and the interim chief financial officer and treasurer says the city is facing a combined operating and capital pressure of $46.5 billion in its budget over the next decade.
The report on the city’s long-term financial plan also affirms a warning that was featured prominently in the recent mayoral byelection—that Toronto is facing a $1.5 budget shortfall next year.
The report lists measures for the city to generate new revenue, including progressively higher rates of municipal land-transfer tax on homes valued at more than $3 million, along with the higher vacant home tax and a commercial parking levy.
Mayor Olivia Chow has also urged the provincial and federal governments to give Toronto more financial support.
The city’s executive committee will consider the recommendations at a special meeting next week.
