Property Tax Model is Not Working

 

            Property tax should not fund education or certain Regional services. The current model no longer works. It was created in the 1950’s and since then many economic and social realities have changed dramatically. Property ownership is no longer an indicator of wealth. Property tax was a tax on home equity. Today many young couples buy their first home with little equity in it. The property and education taxes on that home can  be as high as 50% on what little equity they have. Education charges, Regional Police and Social Services should be removed and collected on Provincial income tax.

 

            Seniors today are being forced to put off home maintenance just so they can afford to pay property taxes. These people built our communities. Our local wage levels are lower than the rest of Ontario and with high property tax NOTL residents loose some economic advantage.

 

            A typical home in town, assessed for $265,000 attracts almost $3,500 in property  tax. $2,100 goes to the Region. $780 goes to education and about $600 goes to the town. I propose that the education amount $780, Regional police $789, and Social Services $540 be removed from the property tax. With these changes and assessed value remaining the same, the property tax would be $1,391. instead of $3,500.

 

            The current property tax model does not recognize the ability of the property owner to pay. It assumes that just because you own property you should pay. This is a provincial issue that the municipalities should bring to Queen’s Park.

 

Gary Zalepa Jr.

Real Estate Broker 

  

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