Vaughan mayor calls for no property tax increase in 2021 budget as COVID-19 creates 'unprecedented challenges'

Last year, city council approved 2.85 per cent property tax hike

Yorkregion.com
Oct. 16, 2020
Dina Al-Shibeeb

After COVID-19 has created “unprecedented challenges,” Vaughan Mayor Maurizio Bevilacqua made a statement on Wednesday, Oct. 14 saying city council has supported his motion for a zero per cent property tax increase for the 2021 budget.

"Competitive property tax rates, and tax relief measures more broadly, are equally important to attracting new investments and retaining existing businesses in our city,” Bevilacqua said.

The mayor shared some figures, including how Vaughan’s GDP is “forecasted to decline by 5.9 per cent” this year, from $24.19 billion to $22.76 billion.

This is in line with what’s happening across Canada due to COVID-19, as the national GDP is expected to swoop down by 6.6 per cent by this year’s end.

Citing figures from the Conference Board of Canada, Bevilacqua said Vaughan’s unemployment rate is forecasted to be 7.3 per cent in 2020. The monthly unemployment rate in the Toronto census metropolitan area (CMA) was 14.7 per cent, and in Canada, it was 12.3 per cent as of July 2020.

“Although it is encouraging to know Vaughan's unemployment rate is well below the national and regional levels -- we must do more to support business owners,” the mayor said.

He said he anticipated Vaughan’s economy to recover in 2021, but “it will likely be 2022 before all industry sectors have fully recovered.”

“Now more than ever, council must explore all options to ensure Vaughan creates the right environment for aspiring entrepreneurs and established businesses to achieve economic prosperity.”

Last year, Vaughan’s council approved a property tax hike of 2.85 per cent.

However, mitigating pressures coming from taxation has been one of Vaughan’s strategies and part of its business action plan unleashed as both the city and the province declared a state of emergency on March 17.

"Small businesses -- which have been particularly hard-hit by COVID-19 -- remain the backbone of Vaughan's strong economy, representing more than 85 per cent of all local job creators,” the mayor said. “The city-wide #ShopVaughanLocal campaign continues to surge on social media in support of our local business community.”