City Of Toronto Considers Implementing A “Rain Tax”

According to a page on the city’s website, the tax falls under an infrastructure package called the “Stormwater Charge & Water Service Charge Consultation.”

“The City of Toronto is consulting with water users and interested parties on the possible implementation of a stormwater charge, stormwater charge credits and a water service charge. These potential charges would impact the rate that customers pay for their water,” the city says.

The city is currently looking for possible feedback on implementing the following:

• A stormwater charge for all property classes
• A stormwater charge credits program for large properties; and
• An administrative water charge (referred to as a “water service charge” in this consultation)

The city goes onto explain the purpose for such a tax and how it would be enforced:

Stormwater is rain and melted snow. When not absorbed into the ground, stormwater runs off hard surfaces, onto streets, down storm drains and through a network of pipes that carry it into local waterways.

In urbanized areas like Toronto, there are a lot of hard surfaces. When severe storms happen, more stormwater runs off hard surfaces and enters the City’s sewer system. Too much stormwater can overwhelm the City’s sewer system, which can lead to flooded basements and impacts to surface water quality in Toronto’s rivers, streams and Lake Ontario’s waterfront.

The water rate that water users currently pay as part of the utility bill includes costs for stormwater management.

The City is consulting on a proposal for a stormwater charge that would be dedicated to funding the City’s stormwater management initiatives. A stormwater charge would be based on the impact of a property with respect to stormwater runoff to the City’s storm sewer system, which is represented by the amount of hard surface area on a property. Hard surfaces include roofs, asphalt driveways, parking areas and concrete landscaping.

Under the stormwater charge proposal, costs for stormwater management would be removed from the water rate and the stormwater charge would appear as a separate line on the utility bill. This would result in a reduction of the water rate in the calendar year that the stormwater charge would take effect, if approved by City Council.

For properties less than one hectare in size, there would be a tiered, flat rate stormwater charge based on the average hard surface area of all properties in each tier. Property tiers are determined by property size ranges for different property types – residential, multi-residential and condominium, and industrial commercial and institutional (ICI).

For properties one hectare or larger in size, the City would undertake individual assessments of each property using aerial photography to determine the hard surface area (m2) on a property.

In addition to a stormwater charge, the City is consulting on a potential stormwater charge credits program for large properties. Stormwater charge credits would provide a reduction of a potential stormwater charge (if implemented) on the utility bill for large properties.

National Post also noted:

Water bills would now include two items – the existing water usage charge (at a reduced rate), plus a fixed charge for stormwater management based on property size and the amount of hard surface on the property.

The city estimates that water rates would fall by 25 percent, as $385 million in stormwater management funds were removed from the current tax. In exchange, property owners would pay a stormwater charge of about $1.68 per square metre of hard surface. That would be determined by aerial photography done by the city.

Residents are able to provide their feedback until April 30th.

The city said in a statement to Now Toronto:

If adopted, the stormwater charge would create a dedicated revenue stream for funding the numerous, large stormwater management improvement projects meant to address the problems caused by stormwater and severe storms, including basement flooding and adverse impacts on surface water quality in rivers, streams and Lake Ontario waterfront, as well as watercourse erosion which puts vulnerable sewer and water infrastructure at risk (e.g. exposed sewer manholes and sewers).

Canadians are not fond of this at all. According to a Toronto Sun poll that asked, “Are Toronto’s politicians out of touch with reality by proposing a Rain Tax?,” 95.65% of the 7,479 total participants voted ‘yes.’

Many mocked the proposal on social media. One user wrote on X, “Next they’ll tax sunlight.” …