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Municipal Act and City of Toronto Act

TORONTO CALL TO ACTION: NO NEW TAXES

On January 1, 2007 the City of Toronto received new powers under the City of Toronto Act, allowing them to levy taxes outside of the property tax regime.

The taxes being considered include the following:

• liquor tax
• parking tax
• land transfer tax
• entertainment tax
• billboard/outdoor advertising tax
• vehicle registration tax
• road/congestion tax
• tobacco tax

City staff reports overviewing the impacts of each of the proposed taxes may be viewed at www.toronto.ca/finance/revenue_tools.htm

Ontario’s foodservices industry, more than 60% independently owned and operated, continues to experience the lowest industry profit margins in Canada, at only 2.9%. The industry simply cannot sustain continued increases to operating costs, particularly a series of municipal taxes which collectively will alter traffic patterns and consumer behaviour. The proposed taxes will have a negative impact for Toronto’s families and businesses, and visitors alike. The entire business community must stand up together and fight all of these taxes collectively. The ORHMA continues to seek an amendment to the City of Toronto Act to revoke the City’s new taxing powers, and to ensure that no other municipalities are granted taxing powers.

While the ORHMA opposes all of the proposed taxes emphasis has been placed on the proposed liquor tax which specifically targets the hospitality industry. 58% of every dollar spent on beverage alcohol in Ontario already goes to the Federal and Provincial governments, and the City wants to tax consumers even more. No other municipality in Canada charges a tax on beverage alcohol. For more information on the proposed liquor tax visit www.nodrinktax.ca

The ORHMA is working with a number of like-minded business associations to ensure that the interests of the business community are represented, but we can’t do it without you!


ORHMA Toronto Region members are asked to call or write to your Councillor and tell them you are opposed to the new taxes!

Visit www.app.toronto.ca/wards/jsp/wards.jsp to identify your Councillor and to get contact information for all members of Council.

The ORHMA continues to lobby the provincial government to ensure that other municipalities are not granted the same taxation powers.

No Drink Tax Press Release (PDF)

ORHMA Presentation on City of Toronto Act

Municipal Act
The government has also introduced, and is currently considering, amendments to the Municipal Act which governs all municipalities in the province. The purpose of the amendments is to give municipalities new or enhanced powers of regulation and enforcement. This Bill does not include any proposed powers to levy taxes, meaning all municipalities (other than Toronto) will continue to generate revenues solely through municipal property taxes.

Of interest to the hospitality industry, this Bill does propose to give all municipalities the authority to pass by-laws to extend the hours of sale of liquor in all or part of the municipality. Such a by-law would not prevail over any conditions imposed on an individual licensee by the Registrar of the AGCO.

The ORHMA is seeking amendments to the Municipal Act that would revoke the authority of the City of Toronto to levy a retail sales tax on the purchase of liquor and revoke the authority of municipalities to extend bar hours.

ORHMA Presentation on Municipal Act

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We would like to thank Starwood Hotels & Resorts and the California Cling Peach Board for providing the photography used on this page