Reform Durham insane property tax... and save local economy !!


Reform Durham insane property tax... and save local economy !!
The Issue
We, the residents of Durham Region, express our deep concern over the ever-increasing property taxes that have placed an undue financial burden on homeowners and businesses. Property taxes in our region have reached unsustainable levels (double of what Toronto, Markham or Richmond Hill resident pay !!!!) and the rate over which the property taxes increased by is a major concern, impacting our quality of life and the economic vitality of our communities. We urge the Government of Ontario and the Durham Regional Council to take immediate and effective measures to address this pressing issue and undertake a reform of the property tax system with the objective of reducing, and then sustaining on the long term, property taxes paid by residents of Durham.
**Our Key Concerns:**
1. **Affordability Crisis:** Property taxes in Durham Region have risen significantly in recent years, making it increasingly difficult for EVERY resident to afford their homes, protect their investments or keep their businesses, and making it increasingly difficult as well for tenants as owners impacted are passing on the additional costs with substantial rent increases. This is leading to financial strain and is not a sustainable model for the region and its residents especially considering that Durham is the region which is predicted to grow the most within the GTHA over the next two decades, with an expected growth close to 40% by 2046. Unreasonable Property taxes combined with high interest rates, high inflation, an upcoming MPAC reassessment of home value along with a lack of planning on how to accommodate such expected growth seem like a recipe for disaster for current and future residents of Durham.
2. **Economic Impact:** High property taxes reduce consumers spending into the community such as residents’ budget for activities, restaurants, kids sports and any other local activity that primarily benefit the local businesses. High property taxes also deter new businesses from setting up in our region and place existing businesses and especially small businesses or brands at a competitive disadvantage. This stifles economic growth, reduces job opportunities, and affects the overall prosperity of our communities.
3. **Property Tax planning and transparency:** While no one is disputing the need for everyone to contribute, a large number of projects and developments are coming in Durham without providing any sort of relief to taxpayers. For instance, the Pickering Casino and Resort brings very substantial additional income (including OLG payments made to the City of Pickering of over $42 million since July 2021) as well as local employment opportunities, however property taxes in Pickering have also increased substantially during the same period, giving very little hope to residents that there is a plan to cap and reduce such tax on the long term. In just over 24 months, property taxes in Durham increased by over 10% which means that without any planning or controls, this tax could very well increase by another 50% -from what is already considered by most residents as unreasonable- within the next 6 years.
4. ** Services and value for money:** Despite the high taxes, many residents feel that the services provided do not justify the costs. There is a perception that the funds collected are not being used efficiently or effectively to benefit the community. The taxes keep increasing while the quality of services remains the same or decreases. Residents of Durham, paying more property taxes than most GTHA residents, feel legitimate to be consulted on future spend, plans and get best value for each dollar they spend.
**The proposal of Durham region’s residents:**
1. **Comprehensive Tax Review:** Conduct a thorough and transparent review of the property tax system in Durham Region. This review should involve community input and consider alternative models that could provide more equitable and sustainable funding for local services with the goal to cap and decrease property taxes over time.
2. **Property Tax planning and implementation of a business case process for each property development:** Introduce legislation that caps annual property tax increases to a reasonable and predictable level, aligned with inflation and local economic conditions. This will provide residents and businesses with financial stability and predictability. A roadmap should be provided by the municipalities and the region of Durham to provide a long term plan listing all upcoming projects and developments within the next 10 years in order to ensure the financial sustainability of our region. Part of this exercise should include a Go / No Go decision of each major project or development with input from the community based on its financial viability associated infrastructure investment (school, community, traffic, transit, health provider, water and waste management, utilities, etc.) and benefits it could bring to the community. In a nutshell, each large project or development (threshold to be determined) would be subject to a business case and if such business case is not beneficial to residents or not contributing to lowering property taxes as per a defined roadmap, it would be rejected until it benefits the residents and the region. Indeed, on the surface and if analyzed in isolation, any project to build condominiums and attract more taxpayers could seem beneficial from a short term point of view but could end up being unsustainable on a longer term.
3. **Increased Support:** Advocate for increased financial support from the Government of Ontario to help offset the costs of essential services, infrastructure, and public projects in the Durham region. This support can help reduce the reliance on property taxes as the primary source of funding especially when new infrastructures such as hospitals or schools are required to accommodate sale of lands ultimately used to build condominiums. Financial support from Developers and possible taxes on land sales used to build condominiums or large developments of horizontal dwellings are to be considered in order to pay for the additional infrastructure.
4. **Efficiency improvements to boost local economy:** Implement efficiency improvements in regional and municipal operations to ensure that taxpayer dollars are being used effectively. This includes exploring cost-saving measures, reducing administrative overhead, and prioritizing essential services as a property tax relief could provide a substantial boost to our local economy. In parallel, efforts could be made to attract large and global businesses to build their flagship operations in Durham and therefore contribute to building infrastructure needed and relieving taxpayers with the additional revenue such businesses would generate.
5. **Enhanced Transparency:** Improve transparency and accountability in the budgeting process by providing clear and accessible information on how tax dollars are being spent and redistributed (e.g. again the example of the Pickering Casino’s additional income being used to fund non priority projects while not providing any relief to taxpayers). Engage with the community regularly to ensure that residents' voices are heard and their concerns are addressed. We recommend an audit to be performed by the Auditor General of Ontario to review current spend profile, identify opportunities to reduce costs and property taxes along with suggestions for a business case (Go / No Go) gating process, as aforementioned, to prevent unsustainable developments to be built in our region.
**Conclusion:** The residents of Durham Region are committed to working collaboratively with local and provincial governments to find sustainable solutions to the property tax crisis. By addressing the root causes of high property taxes and implementing the measures outlined in this petition, we can ensure a more affordable, prosperous, and vibrant future for all. We call on the Durham Regional Council and the Government of Ontario to take immediate action to address these concerns and to work with us in creating a fairer and more sustainable property tax system.
**Signatories:** This petition reflects our collective desire for meaningful reform of the property tax system and a commitment to ensuring that Durham Region remains a place where all residents can thrive.
The Issue
We, the residents of Durham Region, express our deep concern over the ever-increasing property taxes that have placed an undue financial burden on homeowners and businesses. Property taxes in our region have reached unsustainable levels (double of what Toronto, Markham or Richmond Hill resident pay !!!!) and the rate over which the property taxes increased by is a major concern, impacting our quality of life and the economic vitality of our communities. We urge the Government of Ontario and the Durham Regional Council to take immediate and effective measures to address this pressing issue and undertake a reform of the property tax system with the objective of reducing, and then sustaining on the long term, property taxes paid by residents of Durham.
**Our Key Concerns:**
1. **Affordability Crisis:** Property taxes in Durham Region have risen significantly in recent years, making it increasingly difficult for EVERY resident to afford their homes, protect their investments or keep their businesses, and making it increasingly difficult as well for tenants as owners impacted are passing on the additional costs with substantial rent increases. This is leading to financial strain and is not a sustainable model for the region and its residents especially considering that Durham is the region which is predicted to grow the most within the GTHA over the next two decades, with an expected growth close to 40% by 2046. Unreasonable Property taxes combined with high interest rates, high inflation, an upcoming MPAC reassessment of home value along with a lack of planning on how to accommodate such expected growth seem like a recipe for disaster for current and future residents of Durham.
2. **Economic Impact:** High property taxes reduce consumers spending into the community such as residents’ budget for activities, restaurants, kids sports and any other local activity that primarily benefit the local businesses. High property taxes also deter new businesses from setting up in our region and place existing businesses and especially small businesses or brands at a competitive disadvantage. This stifles economic growth, reduces job opportunities, and affects the overall prosperity of our communities.
3. **Property Tax planning and transparency:** While no one is disputing the need for everyone to contribute, a large number of projects and developments are coming in Durham without providing any sort of relief to taxpayers. For instance, the Pickering Casino and Resort brings very substantial additional income (including OLG payments made to the City of Pickering of over $42 million since July 2021) as well as local employment opportunities, however property taxes in Pickering have also increased substantially during the same period, giving very little hope to residents that there is a plan to cap and reduce such tax on the long term. In just over 24 months, property taxes in Durham increased by over 10% which means that without any planning or controls, this tax could very well increase by another 50% -from what is already considered by most residents as unreasonable- within the next 6 years.
4. ** Services and value for money:** Despite the high taxes, many residents feel that the services provided do not justify the costs. There is a perception that the funds collected are not being used efficiently or effectively to benefit the community. The taxes keep increasing while the quality of services remains the same or decreases. Residents of Durham, paying more property taxes than most GTHA residents, feel legitimate to be consulted on future spend, plans and get best value for each dollar they spend.
**The proposal of Durham region’s residents:**
1. **Comprehensive Tax Review:** Conduct a thorough and transparent review of the property tax system in Durham Region. This review should involve community input and consider alternative models that could provide more equitable and sustainable funding for local services with the goal to cap and decrease property taxes over time.
2. **Property Tax planning and implementation of a business case process for each property development:** Introduce legislation that caps annual property tax increases to a reasonable and predictable level, aligned with inflation and local economic conditions. This will provide residents and businesses with financial stability and predictability. A roadmap should be provided by the municipalities and the region of Durham to provide a long term plan listing all upcoming projects and developments within the next 10 years in order to ensure the financial sustainability of our region. Part of this exercise should include a Go / No Go decision of each major project or development with input from the community based on its financial viability associated infrastructure investment (school, community, traffic, transit, health provider, water and waste management, utilities, etc.) and benefits it could bring to the community. In a nutshell, each large project or development (threshold to be determined) would be subject to a business case and if such business case is not beneficial to residents or not contributing to lowering property taxes as per a defined roadmap, it would be rejected until it benefits the residents and the region. Indeed, on the surface and if analyzed in isolation, any project to build condominiums and attract more taxpayers could seem beneficial from a short term point of view but could end up being unsustainable on a longer term.
3. **Increased Support:** Advocate for increased financial support from the Government of Ontario to help offset the costs of essential services, infrastructure, and public projects in the Durham region. This support can help reduce the reliance on property taxes as the primary source of funding especially when new infrastructures such as hospitals or schools are required to accommodate sale of lands ultimately used to build condominiums. Financial support from Developers and possible taxes on land sales used to build condominiums or large developments of horizontal dwellings are to be considered in order to pay for the additional infrastructure.
4. **Efficiency improvements to boost local economy:** Implement efficiency improvements in regional and municipal operations to ensure that taxpayer dollars are being used effectively. This includes exploring cost-saving measures, reducing administrative overhead, and prioritizing essential services as a property tax relief could provide a substantial boost to our local economy. In parallel, efforts could be made to attract large and global businesses to build their flagship operations in Durham and therefore contribute to building infrastructure needed and relieving taxpayers with the additional revenue such businesses would generate.
5. **Enhanced Transparency:** Improve transparency and accountability in the budgeting process by providing clear and accessible information on how tax dollars are being spent and redistributed (e.g. again the example of the Pickering Casino’s additional income being used to fund non priority projects while not providing any relief to taxpayers). Engage with the community regularly to ensure that residents' voices are heard and their concerns are addressed. We recommend an audit to be performed by the Auditor General of Ontario to review current spend profile, identify opportunities to reduce costs and property taxes along with suggestions for a business case (Go / No Go) gating process, as aforementioned, to prevent unsustainable developments to be built in our region.
**Conclusion:** The residents of Durham Region are committed to working collaboratively with local and provincial governments to find sustainable solutions to the property tax crisis. By addressing the root causes of high property taxes and implementing the measures outlined in this petition, we can ensure a more affordable, prosperous, and vibrant future for all. We call on the Durham Regional Council and the Government of Ontario to take immediate action to address these concerns and to work with us in creating a fairer and more sustainable property tax system.
**Signatories:** This petition reflects our collective desire for meaningful reform of the property tax system and a commitment to ensuring that Durham Region remains a place where all residents can thrive.
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Petition created on June 11, 2024