Chow's executive committee refers proposed commercial parking tax back to city staff
A proposal to impose tax on commercial parking across Toronto, which could generate as much as $150 million for the city, has been sent back to city staff for further study.
On Thursday, Mayor Olivia Chow’s executive committee voted in favour of a motion by Councillor Shelley Carroll to refer the proposal back to Stephen Conforti, the city’s chief financial officer and treasurer.
Conforti has been directed to submit a report before the 2025 budget process on the results of public communications and stakeholder engagement, refined estimates and design scenarios and a final implementation plan.
Carroll’s motion also requests the city manager and Conforti to undertake a comprehensive parking inventory.
In their initial proposal, staff recommended that a city-wide levy be applied on all commercial parking, both public and private, with two distinct geographical zones.
Commercial parking in Zone A, defined as downtown and central waterfront, would be taxed $0.49 per parking spot, and all other areas, referred to as Zone B, would be taxed $0.25 per spot.
The levy would include both unpaid and fee-paid parking lots, including surface parking, underground parking and parking garages.
There would be an automatic exemption for the first 300 square metres of parking for each business, which amounts to about 10 parking spaces.
The tax would add between $100 and $150 million to city coffers each year, staff said.
The city said there are an estimated one million commercial parking spaces in Toronto and about 23,000 commercial properties would have been subject to the levy.
Based on an average of 44 parking spots, the impact to an individual business in Toronto is estimated to be between $2,970 and $5,940 per year, depending on location, staff said.
For larger businesses, the price tag would be much steeper.
The city estimates that a large downtown shopping centre with about 144,000 square metres of parking would pay more than $800,000 each year. A large downtown office space with 42,000 square metres of commercial parking would be looking at an annual tax of more than $200,000.
While staff note that the primary objective of the tax is to raise money for the cash-strapped city, there are multiple other benefits to a commercial parking levy.
“The introduction of a parking levy is expected to have a positive impact on City priorities and objectives, including reducing congestion and positively contributing to climate action by encouraging Torontonians to use transit or other means to travel,” city staff wrote.
Staff noted that to effectively bill and collect a parking levy, the city will need to develop and maintain an accurate inventory of parking areas. It is estimated that it could take between 12 and 18 months to develop that inventory, update billing systems, complete testing and notify commercial property owners.
CTVNews.ca Top Stories
Parts of Canada hit with freezing rain, heavy snowfall warnings, expected to last through Monday
Significant snowfall and heavy rain hit parts of Canada on Sunday and the weather system is expected to continue into Monday morning and throughout the day.
Who is Abu Mohammed al-Golani, the leader of the insurgency that toppled Syria's Assad?
Abu Mohammed al-Golani, the militant leader of the insurgency in Syria, has spent years working to remake his public image, renouncing to ties to al-Qaida.
Suspect wanted after victim forcibly confined, assaulted, and threatened with death in Scarborough
Police have released images of an individual who allegedly forcibly confined, and assaulted and threatened to kill another person in southwest Scarborough over the weekend.
Jay-Z accused of sexually assaulting 13-year-old in 2000 incident along with Sean 'Diddy' Combs
A woman who alleges she was sexually assaulted by Sean 'Diddy' Combs has amended her lawsuit to include allegations that she was also assaulted by Jay-Z at the same party.
Trump calls for immediate ceasefire in Ukraine and says a U.S. withdrawal from NATO is possible
Donald Trump on Sunday pushed Russian leader Vladimir Putin to act to reach an immediate ceasefire with Ukraine, describing it as part of his active efforts as U.S. president-elect to end the war despite being weeks from taking office.
A timeline of the murder of UnitedHealthcare CEO Brian Thompson and the search for his killer
The search for the killer of UnitedHealthcare CEO Brian Thompson's has stretched beyond New York City and continues. Here's what we know so far.
Baby found dead in south Edmonton parking lot: police
Police are investigating the death of an infant in south Edmonton.
Pantone names its colour of the year for 2025
Pantone has named an 'evocative soft brown' its colour of the year for 2025, continuing a tradition that has now run for more than a quarter of a century.
Do you recognize these men? RCMP seek Metro Vancouver grandparent scam suspects
Mounties in Metro Vancouver have released photos of two men alleged to have been involved in “numerous” so-called grandparent scams earlier this year, hoping the public can help identify them.