York Region eyes 'unprecedented' road tax over five years
Tax could ease 'pain and pressure' of traffic congestion: CAA

Yorkregion.com
Lisa Queen
Nov. 23, 2017

Are you willing to pay more in taxes to make your commute easier?

York Region councillors are considering boosting the regional portion of the property tax bill by an extra one per cent every year for the next five years to bankroll roads projects.

As much as $1.5 billion short to fund its forecasted 10-year roads construction budget, the region plans to delay 56 projects beyond 2031.

But the delays could be moved up by several years, without adding to the region’s debt, by increasing property taxes by an extra one per cent a year for five years, treasurer Bill Hughes said.

So, rather than increasing regional taxes next year by the forecasted 2.77 per cent, taxes would go up 3.77 per cent.

Instead of the regional property tax going up by $65 for the average homeowner with a house assessed at $632,000, it would go up $89.

The region would borrow from a roads capital acceleration reserve fund and repay it from future development charges, the fees collected from developers to pay for growth infrastructure such as roads and sewers and passed on to new home buyers, Hughes said.

A dedicated road tax that would address “the pain and the pressure” of traffic congestion in a growing region appears to make sense, Elliott Silverstein, manager of government relations with the Canadian Automobile Association’s Thornhill office, said.

“I think this is really an unprecedented conversation. This is something that really has not been discussed at any region of any magnitude in the past. This is certainly an interesting discussion and there’s merit in having the discussion, assessing this and seeing if it can be done,” he said, adding the CAA holds its annual worst roads campaign to lobby municipalities to improve their streets.

“We’ve always talked at CAA that there is a need for dedicated funding. (This tax) would be for a set number of years. It has a shelf life. This is an important step with a specific purpose.”

With residents consistently identifying transportation as their top local concern, some councillors believe residents would be willing to pay higher taxes for road projects, although council must still debate the issue before the budget is passed Dec. 14.

If council sticks with the 2.77 per cent increase, the regional property tax on an average house in Georgina would go up $34 in 2018.

In East Gwillimbury, the average increase would be $49, in Newmarket it would be $51, in Aurora it would be $62, in King it would be $76 and in Whitchurch-Stouffville, it would be $61.

The average increase in Vaughan would be $70, in Richmond Hill it would be $73 and in Markham it would be $67.

If the 2.77 per cent tax increase is approved, a homeowner with a house assessed at $632,000 would pay about $2,417 for the regional portion of the property tax bill.

On average, the region takes about 47 per cent of the residential property tax bill but this varies depending on in which municipality you live.