Ontario’s More Homes Built Faster Act could cost Markham $136M annually

Provincial rule changes could require 50-to-80% property tax hike to cover budget shortfall

Yorkregion.com
Nov. 29, 2022
Irene Wong

On Nov. 22, Markham's mayor and councillors began their new term by making their voice heard in a nine-to-five special council meeting for the province’s More Homes Built Faster Act, 2022 (Bill 23). The council voted unanimously to reject Bill 23.

City staff members presented a report on the various impacts of the proposed Bill 23 legislative changes. The most alarming revelation was that the changes in Bill 23 could cost the city $136 million in annual revenue, requiring an increase of 50 to 80 per cent on property taxes to maintain existing service levels, equalling an estimated $600 to $1,000 per year to the average homeowner.

The $136-million shortfall will be created by the province’s reducing construction costs initiatives, which limit or reduce the ability of the city to levy fees in three key areas: government charges -- parkland, education and community benefit charges. Reducing these charges will shift the burden of growth from developers to the existing homeowners.

“There's no way that we can fund (a) $136-million shortfall,” said Ward 6 Councillor Amanda Collucci. “This Bill 23, I can describe (it as) really devastating, especially from a budget’s standpoint. Unless the province is willing to give us some kind of relief money, how (are we) going to keep up with these types of infrastructure and community needs, libraries, community centres and parks?”

The councillors who spoke in the meeting agreed that the legislative changes will be a huge step back for the quality of living in Markham, and the loss of city income and services will have a long-term impact. They requested to hold off on approving Bill 23 until proper public consultation had been performed.

Wrapping up the meeting, the city requested that the province extend the consultation period on the More Homes Built Faster Act, 2022 to provide more opportunities for public engagement and consultation, given the magnitude and impact of the proposed changes.

The province released Bill 23 on Oct. 25 and the most critical elements of Bill 23, including proposed changes to the Planning Act and government charges acts, are due for comment on Nov. 24.

The city also requested that the province create a special task force, with industry professionals and municipal representatives to review Bill 23.