The Rain Tax will charge residents for storm runoff water in City sewers and drains.
A so-called water tax may soon be coming our way.
Toronto Water has begun holding virtual meetings on a stormwater charge and water service charge.
Public consultations will be held April 8, 11 and 16 to determine the possible implementation of the charges, which would impact the rate that customers pay for water.
It will mean residents with more hard surface run-offs may pay more due to water entering City sewers, roadways or lake.
Homes with lots of paved hard surfaces will have to pay more due to increased stormwater runoff to City roads, sewers, drains and waterways.
The City’s water and wastewater services are funded using a “pay-as-you-go” system that charges a combined water and wastewater consumption rate called the “water rate” based on the volume of water a customer uses.
A proposal for a stormwater charge for all property classes was first considered by City Council in 2017.
City Council in 2021 directed Toronto Water and the Chief Financial Officer to further consult with the public on possible changes to water rates, fees and charges, including a stormwater charge, stormwater charge credits and an administrative water charge.
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.
Toronto has many hard surfaces and when severe storms happen, more stormwater runs off hard surfaces and enters the City’s sewer system. Too much stormwater can overwhelm the sewer system, which can lead to flooded basements and impacts to surface water quality in rivers, streams and Lake Ontario’s waterfront.
Many residents are opposed to the so-called Rain Tax calling it a tax grab.
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.
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 as 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 on a property.