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Mayor announces Toronto’s residential tax rate will rise by 5.5%

Click to play video: 'Toronto property tax rate to jump by 5.5%'
Toronto property tax rate to jump by 5.5%
WATCH ABOVE: Toronto’s 2023 budget has been described as one of the most difficult the city has ever faced and soon residents will contend with a 5.5 per cent jump in property taxes. Still, councillors are warning a massive unfunded gap in the budget will create even more havoc for city operations. Matthew Bingley reports. – Jan 10, 2023

Mayor John Tory has announced that Toronto’s residential tax rate will rise by 5.5 per cent, as the mayor continues to unveil the 2023 budget.

Tory made the announcement on Tuesday and said the increase is below the rate of inflation of 6.6 per cent.

“But I recognize it is nonetheless a significant increase and that we’re asking people to pay more,” Tory continued. “I wish it could be lower because I know any cost increase right now is hard for people to bear.”

Tory said although he wishes it could be lower, the city’s budget faced severe issues this year, including ongoing COVID-19 pandemic costs which have cost the city $5.5 billion since it began in 2020.

“I don’t think we can afford to cut the fire service or cut the ambulance service or cut parks or cut support to housing,” Tory said.

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“I do not want to pause or cancel more projects in order to address this shortfall because I know this will have negative consequences on our city short term, longer term, and on much needed jobs,” he said.

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In 2022, Toronto’s property tax increase was 2.9 per cent plus the 1.5 per cent city building levy increase. This saw the average homeowner’s bill rise by about $140.

Click to play video: 'Toronto property taxes to increase by 5.5% in 2023: Mayor Tory'
Toronto property taxes to increase by 5.5% in 2023: Mayor Tory

In addition, Tory said the 2023 budget also includes a proposed three per cent tax increase for water, wastewater and solid waste. He also included the “hotel tax.”

For commercial properties, the proposed rate increase is 2.75 per cent and 5.5 per cent tax hike for industrial properties.

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— With files from Global News’ Matthew Bingley

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