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Toronto’s controversial new “rain tax” has dried up, less than a week before public consultations were to begin, as the city claims it needs more time to study the plan and align it with other initiatives.
Officially known as a stormwater charge, the so-called rain tax has been considered numerous times by the city since at least 2017. It proposes separating billing for homeowners and businesses into two components: a variable charge based on how much water a property uses, and a fixed stormwater charge, based on property size and the amount of hard surface — roofs, driveways, concrete, etc. — it contains.
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Under the current system, properties are billed only on how much water they use. The proposed new system would reduce the charge for water, with the shortfall coming from the new stormwater charge. A presentation form the city suggested that most homeowners would see at least a modest rise in their bills, while apartment buildings and condos would see decreases of between $3,700 and $27,600 per building. (Whether building owners would pass those savings on to tenants is another question.)
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The proposal generated significant pushback on social media as well as headlines around the world, with Australia’s Sky News declaring: “Don’t go to Toronto: Canadian city considers implementing a rain tax.”
The city had said it would be at least 2027 before the new tax system could be put in place. It had planned virtual meetings for April 8, 11 and 16, and a survey (since closed) to gather opinions from Torontonians.
But the meetings have been cancelled, and the web page for the new levy now reads: “Thank you for your interest in this consultation. Consultation has been paused to allow City staff to do further work to align the possible implementation of a stormwater charge with the City’s broader climate resilience strategy, as well as the commercial parking levy being considered and the City’s long-term financial plan. Future updates will be provided once available.”
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Speaking to Global News, Toronto Mayor Olivia Chow said the pause was not related to those who decried the “rain tax,” but rather because the city needed to first help homeowners figure out how to make improvements to their properties: “How to make their land more porous, by giving them information, financial incentives, so they know how to switch to prevent the flooding that may happen when a big storm comes.”
Coincidentally, the move comes just as Toronto was given a storm warning from Environment Canada, with strong winds and heavy rains Tuesday and Wednesday, expected to taper off to light snowfall by Wednesday night.
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