Tax Fairness for All: An Equitable Approach to the Residential Property Tax Rate on Toronto Island

Consequently, residential property taxes are extremely low as they are based solely on the house value, not the land and house value like the rest of the Toronto. Due to these unique circumstances, Toronto Island residents pay significantly lower residential property taxes than everyone else. For example, the average Toronto Island home owner pays approximately $1,530 per year, whereas the average Flemingdon Park tenant pays $4,320 of property tax annually in their rent. However, given the island setting the cost of providing municipal services there is approximately three times the cost for the rest of the City. With the current residential property tax rate, Toronto Island residents are not paying their fair share. In fact, the provision of their municipal services is heavily subsidized by taxpayers across the rest of Toronto. Area Rating is a tool that allows a municipality to consider unique circumstances to apply a tax rate that is reflective of those circumstances. The employment of Area Rating for Toronto Island may be an appropriate measure for determining appropriate residential property tax rates for these special properties.