Toronto's New Parking Levy: A Burden on Retailers and Consumers - Retail Council of Canada
Finance & Taxation | Ontario

Toronto’s New Parking Levy: A Burden on Retailers and Consumers

February 28, 2024

In the wake of a major tax increase, Toronto’s Executive Committee is now considering a new property tax targeting retailers. This levy, based on parking lot size—a requirement dictated by building codes—will inevitably raise the cost of retail goods. Based on data provided by RCC Members, the average retailer in Canada would face a 9.8% increase, exacerbating the City’s already high commercial property tax rates. RCC is intervening at the upcoming Committee meeting on Thursday February 29, 2024 to oppose this move, which could lead to a 14.3% overall tax hike for retailers, further straining consumers. Implementation is eyed for 2025.

This is particularly important, as it would set a precedent in Ontario for a new form of municipal levy, which other Ontario municipalities may consider as a revenue tool in the future.

RCC will provide a follow up on the outcome of the Toronto Executive Committee meeting.