Tory and Sousa spar over Toronto’s demand for a hotel tax
Mayor John Tory wants it but Ontario Finance Minister Charles Sousa says more work needs to be done before it could happen.

thestar.com
By DAVID RIDER
April 5, 2017

A war of words rages on between Toronto Mayor John Tory and Premier Kathleen Wynne's government, this time over the city's demand for the power to tax hotel stays.

In the latest round of political ping-pong launched in January when Wynne yanked road tolls of the table, Finance Minister Charles Sousa on Wednesday released a three-page list of provincial largesse to Toronto.

The letter, a response to Tory demands from the upcoming provincial budget including big money for transit and housing, lists past pledges for Toronto transit and more, and notes the province has vowed to double cities' share of the gas tax starting in 2019, eventually meaning an extra $171 million a year for Toronto.

The province had said at one point it would give Toronto the power to toll the Gardiner Expressway and the Don Valley Parkway plus extra gas money, but Wynne recanted on tolls when 905-belt MPPs warned their voters visiting Toronto didn't want to pay to use the city-owned roads.

Read more: The premier’s prerogative ensures Toronto rarely gets what it wants: Keenan

Sousa's letter also references Tory's request the province, as soon as possible, allow Toronto to at least implement a tax on hotel stays and Airbnb-style short accommodations.

Sousa tells Tory he “looks to the city to engage with constituents and shareholders, including potentially impacted businesses, to come to an agreement on this proposed revenue source.”

Wynne's government, the finance minister adds, looks forward to seeing the results of those consultations “including the views that have been expressed by impacted businesses and how the city plans to address those concerns as part of its proposal.

“The government will also continue to work with municipalities, industry and stakeholders to determine a balanced approach to supporting the shared economy.”

The Greater Toronto Hotel Association and the Canadian Federation of Independent Business both oppose the proposed tax.

Sousa's tone seems different than Wynne's one day earlier, when she told reporters she knew Tory wanted accommodation tax approval “very soon” and that it would come “in the near future.”

Sousa outlining what sound like hoops for Toronto to jump through, with no guarantee of success, did not sit well Wednesday with the mayor, who complained after Wynne's tolls flip-flop that he was being “treated like a little boy going up to Queen’s Park in short pants.”

“Mayor Tory has had multiple assurances from Premier Kathleen Wynne that the province would grant the City the ability to impose a hotel tax,” Tory spokesman Don Peat said in a statement.

“The sole condition was that Tourism Toronto had to be kept whole on the roughly $20 million it receives annually,” from a voluntary marketing fee some hotels now pay, he added.

“The mayor has given that commitment and council has approved it. The mayor believes it’s now up to the premier to keep her word.”