City sales tax for Toronto?

Torontosun.com
Jan. 5, 2016
By Shawn Jeffords

New taxes to help balance the 2016 budget? Budget chief Gary Crawford has poured cold water on the idea.

Crawford told reporters Tuesday that talk among some councillors about creating “revenue tools” - a variety of different taxes including parking and sales taxes - is premature. The broader measures to help pay for $22 billion in unfunded capital projects will have to be part of a larger discussion after the 2016 budget is finalized.

Balancing the budget with a tax increase held at or around the rate of inflation is a priority, Crawford insisted.

“At this point, I’m not looking at any revenue tools,” he said. “I’m really focusing on where do we find it from within. One of my goals is to look at doing an affordable budget, which is a 1.3% (increase). I’m still confident we can do that as we go through the process.”

During the budget committee meeting Tuesday, Councillor Joe Mihevc mused that he was starting to think creating revenue tools is the way to go. After the morning session, Councillor Joe Cressy added the city just doesn’t have enough cash to build for the future. Cressy said he favours a city sales tax.

“We’re talking about billions of dollars to strengthen our economy and support people,” he said. “So, what does that look like? Frankly, it should be a sales tax.”

But Crawford said the province would have to grant the city special permission to impose a sales tax.