Toronto residents are confused about a possible 'rain tax' – here's ...

26 Mar 2024

(Courtesy: Flickr).

Toronto is considering charging homeowners a stormwater fee leaving many residents  concerned about the rise in their water bills.

Rain tax Toronto - Figure 1
Photo NOW Magazine

The city is currently asking residents for their input on the potential implementation of a stormwater charge, stormwater charge credits and a water service charge.

Many people online have been calling this fee a “rain tax.” 

Stormwater is the melted remains of snow and water that run off hard surfaces and into drains or pipes connected to the water system, according to the City of Toronto’s website. 

“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 city said. 

Toronto residents currently pay for a water rate that includes costs for stormwater management.

However, the city’s proposal advocates for the stormwater charge and the water service charge to appear as separate lines on a Torontonian’s utility bill. 

The city says the water service charge would be a flat rate charge based on a property’s water meter size, which is one-inch or smaller for most residential properties.  

“Costs for stormwater management would be removed from the water rate and the water rate would be decreased by approximately 25 percent,” the City told Now Toronto.

Some Torontonians are still concerned the stormwater tax will unfairly raise taxes overall.

“How will they measure this? Once the grass absorbs it?” one person posted on X. 

“Next they’ll tax sunlight,” another user tweeted. 

Some Canadians are confused about what the city is actually trying to do. 

“The city is not doing a very good job of explaining the proposal,” one Reddit user commented.

The city specifies properties less than one hectare would still have a flat rate stormwater charge based on the average hard surface area of all properties in each tier. 

“The potential stormwater charge would be charged based on property type, property size and the amount of hard surface area on a property,” the City said.

The city says multi-residential properties like condos and apartment buildings would likely see a decrease in the water and sewer portion of the utility bill.

Larger properties, however, would be eligible to apply for stormwater charge credits. 

Apparently, this isn’t the first time there’s been discussion about implementing a stormwater tax in Toronto.

Overall, this proposal is meant to encourage Torontonians to live more eco-consciously, according to the city. 

“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),” the City said in a statement to Now Toronto.

Halifax started experimenting with stormwater charges as well and is currently debating whether residents should pay a general rate or an area rate, according to the Halifax Examiner. 

Toronto will be listening to the public about their opinions on the stormwater charge and water service charge until April 30. Toronto residents can participate in the city’s virtual meetings on April 8, 11, and 16 from 6 p.m. to 8 p.m. Residents can also take a survey here.

Roveena Jassal

Writer / Reporter

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