Toronto Tenants Unfairly Taxed
August 10th, 2009Are you a tenant in Toronto who has just had it with taxes? According to the Federation of Metro Tenants, Toronto’s high property tax rates are pushing apartment renters past the poverty line. Toronto home owners are always complaining about their property taxes but the truth is that Toronto tenants are taxed at almost three times as much as residential homeowners. The reason for this is that apartment landlords are taxed as businesses and they in turn recoup the money from their tenants. This becomes a double whammy for tenants because they can’t deduct their rent from their income in spite of the fact that the rent that they pay in turn pays for the services – transit, fire, police - that their landlords are deducting. The Federation of Metro Tenants reports that tenants occupy approximately 9% of Toronto and pay 19% of the taxes. Where is the justice in that?
To add insult to injury as of July 1, 2010 people across Ontario will have to pay the 8% provincial sales tax (PST) when the province applies a harmonized sales tax on utilities among other things. This means that landlords will be paying 8% tax on electrical, plumbing, painting, landscaping, snow removal, etc. in addition to electricity and heating oil. Currently 20% of tenants pay their own utilities however in the buildings where landlords are paying the utilities you can be sure that they will be going after the tenants seeking increases in compensation.
What can you do? Contact your Ontario Member of Provincial Parliament.