Canada Rain Tax Proposal

Canada Proposes Rain Tax for Development

Canada Rain: Toronto is contemplating a fresh approach to billing homeowners and businesses for water consumption, introducing a stormwater charge, which some are already dubbing the rain tax due to its focus on managing stormwater runoff.

Originating in 2021 during Mayor John Tory’s administration, earlier proposals trace back to 2017. The city has unveiled a video elucidating the specifics of the proposed levy.

Canada Rain Tax…

Presently, Toronto apportions funds over a decade-long capital plan for maintaining and upgrading sewers and stormwater tunnels. Projects like the Don River and Central Waterfront endeavour to elevate water quality by tackling combined sewer overflows during rainy spells.

The novel system proposes charges based on a property’s hard surface area roofs, driveways, or concrete landscaping which don’t absorb water. This aligns the cost of stormwater management with properties generating more runoff.

Advocates argue that a dedicated stormwater charge would ensure earmarked funding for management services, instilling awareness among property holders about runoff’s repercussions.

Water bills would now encompass two elements: the extant water usage charge at a reduced rate and a fixed fee for stormwater management contingent on property size and hard surface area.

The city anticipates about 1/4th dip in water rates, diverting $385M from existing taxes into stormwater management. Property holders would shoulder around $1.68 per square meter of hard surface area, determined via city conducted aerial photography.

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