TORONTO: The Canadian Taxpayers Federation called on Toronto Mayor David Miller to respect his election promise to keep property tax increases at or below the level of inflation, by applying the city's 2003 budget surplus against proposed 2004 property tax increases.

According to newly released figures, Toronto's 2003 budget surplus stands at $39 million, $24 million more than predicted. By offsetting this amount against proposed 2004 property tax increases of $33 million for residential taxpayers and an allowable $26.5 million for commercial / industrial taxpayers*, Toronto would reduce its total proposed property tax increases to $35.5 million. This would translate into a 1.8% tax increase for residential taxpayers and a 0.9% increase for business taxpayers - still higher rates, but lower than the suggested hikes of 3% and allowable 1.5 %, respectively.

"Toronto residents can't afford a 3% increase in their property taxes - and they shouldn't have to pay it," said Tasha Kheiriddin, Ontario Director for the Canadian Taxpayers Federation. "Prioritized spending coupled with this surplus should negate the need for any tax hike. At minimum, however, the Mayor must keep his election commitment to tie increases to the rate of inflation, which the Bank of Canada is targeting at 2% for 2004. If he's a man of his word, he will apply the surplus to reign in residential tax increases."

Added Kheiriddin, "The Mayor is also threatening Toronto's business community with a new property tax hike, which will be passed on to all Torontonians the form of higher prices, higher rents and lost jobs. If the Mayor is serious about keeping and attracting businesses to our city, he must keep business taxes competitive with those of neighboring municipalities."

* permitted by regulatory changes enacted by the provincial government March 15 2004.