Councillors send mayor 'message'3-month deferral of new taxes is stinging rebuke of Miller -- but at what cost? |
Calls to impose a controversial land transfer tax and a new vehicle registration fee are dead until at least October.
In a major blow to Mayor David Miller's leadership, city council voted 23-22 last night to put off making any decisions about imposing the new taxes until Oct. 22.
In approving the deferral, councillors stated they wanted the chance to pressure campaigning provincial political parties into eliminating the shortfall created by Queen's Park's decisions to download costs on to Toronto's municipal government.
Ontario goes to the polls on Oct. 10.
"This is a message to David Miller and to Dalton McGuinty that Toronto taxpayers aren't going to take it any more. Enough is enough," Councillor David Shiner said. "They can't afford to pay any more."
'REGRET DECISION'
Miller had staunchly pushed for the new taxes, arguing the cash-strapped city requires more money to finance transit improvements and cover other costs.
"I obviously regret council's decision to defer these measures," Miller said.
The city faces a budget shortfall of $576 million next year. The proposed land transfer tax was to generate $300 million annually; the new $60 vehicle registration fee would have yielded $56 million.
But the levies sparked vehement opposition from groups such as the Toronto Real Estate Board, Canadian Automobile Association, the Canadian Federation of Independent Business and Canadian Taxpayers Federation.
City finance officials had warned that if council failed to approve the new levies, Toronto homeowners faced property tax hikes as high as 18% and possible service cuts.
Miller highlighted sidewalk snow removal in North York and leaf pick-up in Etobicoke as examples of the services that could be cut.
He warned that it's "very possible" residents could endure some tough medicine next year even if city council votes in October to implement the two new taxes.
NEXT MARCH
It will take a minimum of four months to implement the new levies, he said, meaning it could be the end of next March before the city would collect any additional money. Plans had called for the city to start collecting money from the new taxes on Jan. 1.
Miller also downplayed the significance of his inability to deliver a positive vote. New rules implemented after last November's municipal election were designed to enhance the mayor's power at City Hall. He has not lost a major vote since the election.
"My concern is for Toronto. I can understand members of council -- this is a tough, tough decision," he added. "It's very difficult to look people in the eye and say, 'The resources aren't there to meet the needs of Toronto.' But that is the fact."
He conceded that -- given yesterday's vote -- it will be difficult to live up to his election promise to keep residential property tax increases in line with inflation.
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