Mayor Olivia Chow’s first budget includes 10.5% property tax spike in Toronto

(Aanchal Nigam / Red Maple)

Toronto's Mayor Olivia Chow's first budget proposal, presented by Budget Chief Shelley Carroll, has introduced a significant 10.5 per cent increase in property tax. 

This hike, one of the largest in recent years for the city, is a response to Toronto's ongoing struggle with a persistent deficit.

The proposed increase is a combination of a nine per cent hike in property taxes and an additional 1.5 per cent raise for the city building fund. This decision came in the backdrop of the city's attempts to navigate financial challenges, including lingering economic impacts from the COVID-19 pandemic and rising inflation.

In a move to balance the budget, the proposal also includes a rise in the police budget, while freezing Toronto Transit Commission (TTC) fares for 2024. 

The Budget Committee, which convened on Wednesday, is expected to delve deeper into the details of the 2024 operating budget and the capital budget and plan for 2024 to 2033.

Toronto has recently achieved a significant financial breakthrough with a deal involving the transfer of responsibility for the Gardiner Expressway and the Don Valley Parkway to the provincial government, potentially freeing up billions for the city in the coming years. 

Carroll said the deal is already set to release $400 million for the city in 2024. However, she emphasized the need for additional support from other government levels. 

Before the budget process, Mayor Chow had stated her intention to thoroughly assess the city's needs before finalizing the tax rate. 

The City Council is scheduled to debate and vote on this budget in February, a decision that will significantly impact Toronto's financial trajectory and its efforts to overcome current economic challenges.