Opponents speak out against Toronto's proposed taxes

Several dozen people packed a room at Toronto City Hall Monday to oppose two proposed taxes that could cost residents thousands of dollars, butraise $356 million for the cash-strapped city.

Opponents of the city taxes, including the Toronto Board of Trade and members ofthe city's business community, told the city's executive committee thatthe short-term measures will erode Toronto's economic competitiveness.

Under the proposal, residents purchasing a $400,000 homein Toronto would pay $4,000 to the city on top of the $4,000 land transfer tax they already pay the province.

As well, vehicle registration fees would nearly double, with residents paying $60to the city on top of the $74 already paid to Ontario.

Bill Johnston, of the Toronto Real Estate Board, called the land transfer tax an unfair burden on a small group of homebuyers. The tax will provide little in return since the funds will support existing services, he said.

However, thecity's chief financial officer, Joe Penachetti, saidToronto needs to the make the money one way or another: if the two proposed taxes aren't approved, residents can expect a spike in their property taxes.

Mayor David Miller and city officials have said they want to start charging the citytaxesnext year. The new City of Toronto Act allows the city tofind new ways to generaterevenue, such as with new taxes.

The executive committee is expected to approve the two proposed taxes. City council must give final approval at their meeting next month.