Monday, September 10, 2007

Here is some more proof!

The chart above comes from a report by Hemson Consulting done on behalf of the city of Toronto ( . If in 1986 one was to have spent $1,000,000 on industrial land in Mississauga today it would be worth over $4,000,000. By comparison if that money was spent in Toronto it would be worth on average today $1,800,000. Applying commercial tax rates on the current values would mean that Mississauga would receive 42,678.84 from that property (4,000,000 * 1.066971%). By comparison Toronto would receive 41,278.13 (1,800,000 * 2.2932294%). All the while it misses out on the development and other charges which net the city a lot of revenue. In the end, even though Mississauga has a much lower tax rate, it makes up for the 2% difference in net property tax ( realized income ) by increased development charges and volume.

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