Hamilton’s tax burden ‘high’ compared to similar-sized cities across Ontario: report

Although mostly symbolic, nan City of Hamilton passed a mobility Monday declaring an “affordability crisis” successful nan city.

The edict was presented by Ward 14’s Mike Spadafora and positioned arsenic a measurement to effort to get much backing from nan provincial and national governments for everything from societal services to infrastructure.

“When I did tally (for council) successful Ward 14, affordability was a privilege and it’s going to proceed that way,” said Spadafora. “I request my residents to understand that I perceive them connected a regular basis.”

The declaration followed an yearly taxation position from nan city’s finance division, which classed Hamilton’s taxation load arsenic “high” compared to 30 cities pinch akin populations crossed Ontario.

Combined pinch information from a “tax competitiveness study” study, which rates really each Ontario municipality stacks up against each other, nan city’s finance section suggests nan taxation load connected residents successful Hamilton is moving successful nan other guidance nan section would for illustration to spot it go.

The information revealed a mixed measure of h2o and spot taxes represents astir 5.3 per cent of nan mean section family income of $111,000 — nan 2nd highest specified percent among towns and cities crossed nan Greater Toronto Area.

Only Oshawa had higher, astir 5.5 per cent.

General head of finance, Mike Zegarac told a wide issues committee Monday that betwixt 2015 and 2021 nan city’s taxation load connected a azygous detached residence had been improving moving from a 17.5 per cent summation to conscionable a 9.4 per cent surge successful nan past year.

However, he says it has since eroded moving up 12 per cent successful 2022 and conscionable short of 12.4 per cent successful maturation arsenic of nan extremity of 2023.

Hamilton’s residential spot taxes represented a load of 4.56 per cent of nan mean section family income, a alteration from 2022 wherever residential spot taxes represented 4.73 per cent.

Currently, a family taking successful nan city’s yearly mean income of $111,188 will manus complete $5,064 of that successful residential taxes.

He alerted councillors that adding $80 cardinal successful nan 2024 fund towards lodging and homelessness, owed to provincial improvement costs moving from builders to taxpayers, will further impact nan study’s numbers adjacent year.

In 2023, nan metropolis was nan 3rd highest investor successful lodging and homelessness crossed nan province, 2 times nan mean of comparators successful nan study.

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Additionally, caller costs for societal services, for illustration investments for semipermanent attraction accommodation and kid care, that nan metropolis hasn’t traditionally funded done municipal taxes will besides displacement study numbers for 2024.

“So those are examples of services that should not beryllium funded from spot taxes,” Zegarac said. “As well, provincial argumentation has an effect successful position of nan divided betwixt residential and non-residential tax.”

Zegarac said 88 per cent of nan city’s gross intake is coming via residential taxes pinch astir 12 per cent from non-residential entities tied to manufacture and commercialized businesses.

He says that’s comparatively unchanged since 2015 erstwhile nan “split” was 87 per cent residential to 13 per cent complete nan past 9 years putting Hamilton “middle of nan pack” among nan 98 Ontario municipalities successful nan comparative metric.

“We want to support moving that divided successful favour of increasing nan non-residential,” Zegarac explained.

He says maturation successful nan non-residential portion of nan “split” has still been favorable betwixt 2020 and 2023 owed to nan occurrence of metropolis strategies astir managing infrastructure and servicing.

Zegarac said nan metropolis would request to spot $980 cardinal much successful “new assessment” to spot “split” numbers move up 1 per cent.

The GM said high-density developments, peculiarly those earmarked for nan forthcoming LRT corridor, downtown and waterfront areas, whitethorn thief expenses pinch metropolis services done caller modern infrastructure providing amended sustainability compared to sprawl and low-density builds.

“While that’s not highlighted successful this report, location are different reports aliases sources of accusation that item wherever location is greater density and mixed-use, what those communities study is simply a much cost-effective mode aliases measurement of delivering services,” Zegarac said.