City council's executive committee examined a report on Monday that proposes two new taxes that could raise $356 million for cash-strapped Toronto.
While some business leaders and councillors object to the land transfer tax and vehicle registration fee, Mayor David Miller says the "revenue tools" are needed.
"Our challenge is pretty simple. According to the conference board, we're $1 billion short every year to be able to invest in the 21st century city people want," Miller said.
"We're trying to find ways to invest in, for example, dealing with our backlog of road repair, supporting the building of new public transit that people are demanding throughout this city, making sure we can invest in our poor neighbourhoods, and that's our challenge."
Currently, a resident who purchases a $400,000 home in Toronto pays a land transfer tax of $4,000 to the province. The city's proposed land transfer tax would require homebuyers to pay another $4,000 to Toronto.
"That is a 100 per cent increase and would give Toronto the highest land transfer taxes in Canada and the second highest in North America," said Bill Johnston, of Toronto Real Estate Board.
"Both the public and business community think city hall can and must do more to control the cost," added the board's Carol Wilding.
The proposed vehicle registration fee calls for residents to pay an extra $60 to the city, which is on top of the current $74 registration fee motorists pay the province.
Faye Lyons, of the Canadian Automobile Association, says their members feel the two proposed taxes are unacceptable.
"We overwhelmingly hear that people don't feel that this is a fair way to collect taxes," Lyons said.
Under the new City of Toronto Act, Toronto is able to raise revenue in new ways, including new taxes.
The two ideas being looked at Monday would still need approval by city council, which many councilors feel will happen.
The taxes could be implemented as early as early as January.
With a report from CTV's John Musselman
