Toronto’s Proposed Parking Levy: A Retail Sector Burden Amidst New Tax Hikes

Last Thursday February 29, 2024, RCC expressed concern at Toronto’s Executive Committee meeting over the proposed parking levy. This comes just days after the city passed a significant tax increase for residential and commercial properties. RCC is disappointed as this new levy disproportionately impacts retailers, effectively increasing property tax rates by 9.8% to 54.0%, while office buildings face only a 0.6% to 1.3% increase. RCC continues to advocate against this levy, collaborating with trade associations and discussing with the provincial government. Toronto’s current commercial property tax rate is already 253% of residential rates, hitting the cap set by Ontario Regulation 121/07 under the City of Toronto Act. RCC views the levy as an indirect tax on retail square footage, challenging the city’s bylaws and Ontario’s protective regulations.

See full update and chart on Impact of Parking Levy on Different Types of Commercial Properties.

For more details, contact Sebastian Prins, Director Government Relations at sprins@retailcouncil.org.