this post was submitted on 22 Jun 2025
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1/3 of the price of a new home in Canada is taxes, so profits for who exactly?
The answer is existing homeowners, which helps places like Toronto have one of the lowest property taxes in the world despite insane prices.
Explain to me please why existing owners should subsidize the building of city infrastructure in new developments.
I don’t live in Toronto but building new sewers, water systems, roads, community centres etc. shouldn’t be funded by existing taxpayers who still have above ground utility cables and no sidewalks.
Why? Because we live in a society.
We live in a society - yes.
But that’s the reason many of the development fees were put in back in the 1970s and 80s - there were significant equity issues where the exponentially growing new shiny suburbs were built on the property taxes of a much smaller base of urban homeowners who were left with old, inferior and unmaintained city infrastructure.
So, let’s seriously consider whether what the equity issues are now and whether those fees are reasonable cost recovery for infrastructure vs a tax cash grab - or if there’s enough of a base of established homeowners that they could carry the development costs for new homes through reasonable tax increases.