Extra taxes could bring in $3.6 billion for Toronto, report finds
Posted June 22, 2016 6:13 am.
Last Updated June 22, 2016 1:42 pm.
This article is more than 5 years old.
Torontonians are getting a glimpse at how much money the city could raise by imposing new taxes on everything from alcohol to parking.
A consultant’s report prepared by KPMG, which will soon be debated by Mayor John Tory’s executive committee, suggests a hotel tax, a parking space levy, a tax on alcohol and a special entertainment and amusement tax as just some of the ways the city could help pay for public transit infrastructure.
A parking levy of 50 cents to $1.50 a day, per spot, could raise up to $535 million, while an alcoholic beverage tax of one per cent to 10 per cent could bring in as much as $151 million.
In total, the taxes could generate as much as $3.6 billion annually.
The executive committee meets on June 28 to discuss the report. Read it below or click here to view it.
City of Toronto Revenue Options Study, prepared by KPMG, June 2016
After the executive committee debates the report, all councillors will have their chance to weigh in. City council is expected to meet in the fall to consider imposing any the new taxes, which will be part of the city’s Long-Term Financial Direction report.
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Four new GO stations push SmartTrack plans forward
Scarborough subway price tag hits $3.16B
On Tuesday, Tory announced the construction of four new GO Transit stations in the city’s west end as part of his SmartTrack plan. But it is unclear how the city is going to pay for its share of the cost.
Other transit projects are already seeing ballooning costs. The Scarborough subway extension was estimated to be $2.9 billion but city manager Peter Wallace has put the price tag at $3.16-billion.
That means the city will need between $1.18-billion and almost $1.3-billion extra to pay for the full Scarborough transit network plan.
However, on Wednesday, Tory stood by his number of $2.9 billion, saying that report includes the cost of tearing down the Scarborough RT.
“It’s a separate item, albeit perhaps part of the total cost of modifying transit in Scarborough, is the cost of taking down for the SRT. That’s what that difference is. The city manager in his report simply chose to combine those two items,” Tory said.
Meanwhile, the mayor and Transportation Minister Stephen Del Duca are teaming up for their second transit announcement, this one taking place on Wednesday afternoon. They are expected to announce more SmartTrack construction in the east end.
