toronto tax

People are pissed that residents of one Toronto neighbourhood pay way less in taxes

As people in Toronto continue to buzz about the 9.5 per cent property tax increase included in this year's budget, some are pointing out that there is one neighbourhood in which residents won't be as affected due to their lower tax amounts: the Islands.

Ward 16 City Councillor Jon Burnside explained in a new motion this week that those living on the Islands have gotten to enjoy a favourable tax situation, being able to access municipal services and a year-round ferry while paying less than one-third of the property taxes of other parts of the city.

Calling for a more equitable tax breakdown across T.O., Burnside considered how the Islands have "some of the lowest residential property tax bills."

"Home ownership on Toronto Island is different from the rest of the city. Residents own the house but not the land it sits on, which is leased from the City. Consequently, residential property taxes are extremely low as they are based solely on the house value, not the land and house value like the rest of the Toronto," he wrote.

"Due to these unique circumstances, Toronto Island residents pay significantly lower residential property taxes than everyone else. For example, the average Toronto Island home owner pays approximately $1,530 per year, whereas the average Flemingdon Park tenant pays $4,320 of property tax annually in their rent."

This, he said, seems especially unfair given that the cost of providing services like schools, park maintenance, fire, police and more to the island are around three times more (and up to ten times more) than on the mainland.

Toronto Islanders have been paying far less property tax than mainland homeowners and renters. A motion at city hall aims to change that
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With all of this in mind, Burnside feels that "Toronto Island residents are not paying their fair share. In fact, the provision of their municipal services is heavily subsidized by taxpayers across the rest of Toronto."

And it seems that many online agree.

As one person said in a Reddit discussion on the topic that has been popping off today, "islanders consume significantly more city resources than 'mainlanders.' Everything's more expensive to supply an island... they should be paying more property tax, not less."

"We're unfairly subsidizing 262 households. There's no morally viable justification for islanders paying a third as much in taxes as a renter in Thorncliffe Park," another added.

Comment
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And though some stated that the rate of property taxes paid is the same on the Islands as anywhere else in the city, others retorted that those figures are based on "an unfairly low valuation" of the homes on the archipelago, which has a decades-long waiting list to get a chance to live on.

A few argue, though, that this is fine given that Island residents aren't ever able to sell their homes, as they are on long-term leases and do not technically own them. 

But, as Burnside has said, property taxes on the mainland factor into tenants' rents even though they don't own their dwellings, either.

His motion was considered by council on Tuesday and has been redirected to Mayor Chow's Executive Committee.

Lead photo by

A Great Capture


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