Image of the day: increases in Toronto development charges
Op-ed in the National Post by Peter Bethlenfalvy:
Ontario showing it's possible to build infrastructure and be fiscally prudent
Looooollllll. Miss me with this. Bill 185 allowed a huge tax increase on new housing in Toronto, supposedly to support infrastructure. Reckless, irresponsible, buck-passing nonsense.
What happened with Bill 23 and then Bill 185. Development charges in Ontario:
In October 2022, the Doug Ford government in Ontario brought in legislation (Bill 23) requiring municipalities to have a five-year phase-in period for increases in development charges, for any increases from January 2022 onward. There was an uproar from municipalities, saying that this would result in a significant shortfall of the money needed to fund infrastructure, to support new housing. The provincial government promised to make them whole by covering such a shortfall.
In April 2024, Paul Calandra, the new housing minister, brought in Bill 185, which removed the requirement for a five-year phase-in. In other words, the province backed down after less than two years, not being willing to put up the money itself.
To paraphrase Joseph Heath: “People don't have to pay higher property taxes because, yay! we're taxing new housing like it's a gold mine.” Increases in Toronto development charges vs. property taxes:
And it’s not just Toronto. Elsewhere in the GTA:
So similar to Vancouver. 100 year old infrastructure needs replacement. Let's not ask the homeowners that used it not to contribute a Nickle to the replacement.