The windfall from phasing out the hated “Toronto tax” — hundreds of millions of dollars sent from the suburbs each year to bolster social services in Toronto — provided a much-needed respite for municipalities that normally face hefty tax hikes.
For taxpayers in Halton, Peel and York regions, it meant an extra $6 million to $13 million stayed in regional coffers instead of going to the big city. And that amount will continue to increase during the seven-year phaseout.
At the height of social-services pooling — the brainchild of former premier Mike Harris — the province required municipalities around Toronto to transfer between $41 million (Halton) and $79 million (York) each year to Toronto. Peel sent about $60 million. (Durham Region was not required to participate.) When pooling is phased out completely, they will have all that extra money each year to help at budget time.
More money for municipalities
The windfall from phasing out the hated “Toronto tax” — hundreds of millions of dollars sent from the suburbs each year to bolster social services in Toronto — provided a much-needed respite for municipalities that normally face hefty tax hikes.<br />For taxpayers in Halton, Peel and York regions, it meant an extra $6 million to $13 million stayed in regional coffers instead of going to the big city. And that amount will continue to increase during the seven-year phaseout.
