Toronto Mayor John Tory proposed a new tax levy today in order to create a City Building Fund, which would go towards transit and housing projects.

This means that for five years, starting in 2017 (after the Scarborough Subway Levy expires in 2016), Torontonians will have to pay an additional 0.5 per cent per year in property taxes.

According to a news release from the mayor's office, it'll cost the average homeowner $13 per year. And, it'll generate tens of millions of dollars for the city.

"We need to get serious about building a city of the future. That means building transit, which is the single most effective way to cut congestion, and adding more affordable housing, while repairing our existing stock," said Mayor John Tory in a statement.

"People also want to know their tax dollars are being used effectively. By creating a dedicated fund for transit and housing - we are doing just that."

Photo by Empty Quarter in the blogTO Flickr pool.