The local councils can levy new cuts to the fees against home builders. And this can have a major impact on property taxes. A further study found that one municipality has even said that the property taxes can appear to more than double.
Last year, the provincial government passed Bill 23. This ‘More Homes Built Faster Act’ eliminates some fees municipalities usually charge to developers. Here, the charges are in exchange for the right to build different types of homes. This is the money the municipalities say they rely on to provide facilities such as roads, sewers, parks, libraries, etc.
In this context, CBC News polled 25 municipal governments in the Greater Toronto Area on December 15 and 16. They asked in the poll how much money they may lose if they are not collecting the development charges. They also asked how much they believe they have to hike (property taxes) in the years ahead to adjust to the government’s changing criteria. But, the bulk of those municipalities says that it is still unclear how they will contend with the dramatic loss of revenue.
Possibly, it is assumed that about a 6 percent property tax hike can happen next year. Or, cuts to services can appear to help make up for an already predicted revenue shortfall.
The Mayor Asks Province To Repeal The Changes
CBC had asked Joe Clark for his response to GTA politicians. The GTA politicians claim they must raise taxes or cut services to make ends meet.
However, some municipalities argue that it will not make home ownership easier. This is more because residents can expect to face higher property taxes.
Dollars Five Billion In Lost Development Charges In Provinces
The survey responses indicated – East Gwillimbury can get the hardest hit.
The City of Vaughan can lose annually between dollars 169 million and dollars 174 million. And the property tax increase of between 77% and 88%.
Whitchurch-Stouffville can lose dollars 19.6 million over five years. And tax hikes totaling 52.3 percent over four years. This may start with a 20.3 percent jump in 2024.
Newmarket residents can see their property taxes rise between 5% and 15%.
Mississauga may lose about $ 1 billion in revenues forcing an 8% to 10% jump in property taxes.
Brampton may see an expenditure of about dollars 440 million in lost development charges. And a property tax increase of at least 9%.
According to staff in those two municipalities, Toronto and Aurora may face property tax increases of about 6%.
The Change May Not Come Fast
Joe Clark insists that the changes are necessary. In a November letter to the Association of Ontario Municipalities, he wrote that municipal fees and taxes add an average of $ 116,900 to the cost of a single-family home in the GTA. So, this huge down payment for many families puts the dream of home ownership out of reach.
However, Dave Wilkes, the CEO of the Building Industry and Land Development Association of the GTA, agreed that developers could add development charges to the price of a home.
But, he cautioned that prospective home buyers should not expect miracles. It is not yet clear when any tax changes shall take effect. However, this shall depend on the budgets approved by each municipal council. Here, some municipalities suggest the year 2023, and others suggest the following year.