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Toronto mayor denies the city trying to impose a "rain tax"

Toronto mayor denies the city trying to impose a "rain tax"

By Mounira Magdy

Published: April 4, 2024

Toronto Mayor Olivia Chow confirmed that she does not plan to impose a rain tax in the city.

The mayor made this comment on Wednesday after consultations on changes to stormwater fees last week raised concerns about the possibility of taxing homeowners for the rain that falls from the sky.

Chow said on Wednesday night in a post on X which included a video of her wearing a raincoat during the recent rainfall: "Despite what they say on Twitter or X, the city is not trying to impose a tax on rain," "If that were the case, we would be making a lot of money today."

News last week appeared indicating that the city is looking to add additional fees for stormwater based on the size of the property and the paved surface area.

The proposal would have seen stormwater fees removed from the current water price charged to homeowners and added as a separate tax to utility bills as a fixed fee, depending on the paved area on the property.

The new fees were supposed to go directly toward funding stormwater infrastructure.

The idea that properties sending more water to the city’s storm system would face higher fees led some to believe the city was considering imposing a "rain tax."

Chow said on Wednesday that she had asked city staff to take another look at the proposal.

"I have asked Toronto Water to come back to city council with a plan that supports more green infrastructure, prevents flooding, and keeps water bills low."

However, Chow clarified in her video that the idea behind the proposal is to try to ensure that businesses with large parking lots contribute more in line with the larger volume of water they send into the storm system.

Chow said: "When we face a big rainstorm, as we are now, basements flood, roads flood, sewage overflows and runs into the lake or valleys, because stormwater runs off paved roofs instead of absorbing into the ground."

She continued: "It overwhelms our water infrastructure, causes damage to your home and the environment. I think we need to make it easier for people to do their part by giving them financial incentives to plant a nice garden or install a permeable sidewalk to help drain rainwater. I do not think it is fair to have a stormwater policy that demands homeowners pay while allowing businesses with huge parking lots to get off the hook."

There is a note on the page that had information about the consultations saying that they have now been suspended.

"Consultations have been paused temporarily to allow city staff to do further work aligning the potential implementation of stormwater fees and water service fees with the city's broader climate resilience strategy, as well as the commercial parking tax under consideration and the city's long-term financial situation," according to the memo.

It adds that more information will be shared "at a future date."

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