Toronto Councillor Proposes $1 Fee on Commercial Parking Spots
Ontario’s capital is in dire need of funds. Toronto’s councillors need $57 million to pay for the city’s operating costs and another $22 billion to finance the city’s infrastructure projects. How will Toronto raise the money? Councillor Joe Mihevc suggests a daily fee on commercial parking spots.
According to Metro, here’s Mihevc’s proposal. He says, to cover Toronto’s budgetary shortfalls, the city should charge commercial landlords a fee for each parking spot they own. That means, for a massive commercial centre like Yorkdale Mall, the owners would have to pay for over 7,200 parking spots. Meanwhile, a small mom-and-pop shop might be charged for just 10 spots.
Mihevc says commercial landlords could then impose a daily parking fee, thereby getting their customers to shoulder the extra cost. He asserts that if shoppers had to pay just a dollar a day to park, the city could raise more than $500 million in a year.
Why is Mihevc convinced that his solution is the best fit for the city? First of all, the plan doesn’t require provincial backing. Toronto could implement the plan quickly, giving Toronto’s councillors more time to meet their budget goals before their February deadline. Mihevc also argues that a commercial parking charge “doesn’t hit the residential property tax owner” and “would have a minimal impact on low-income Torontonians”. Suggestions by other councillors include a municipal sales tax or a development charge hike.
Mihevc already speculates that a parking charge could motivate more commuters to take transit, but this fee could also lead to cheaper car insurance. How so? A parking fee could spark a change in driving behaviour. For example, car owners might drive less frequently or car pool more often. As a result, drivers could be on the road less, leading to a decrease in accident exposure, mileage, and commuting time. All three of these variables can impact insurance rates.
However, Toronto drivers will have to wait and see if dollar-a-day parking comes to their local parking lots. At the moment, councillors still need to agree on a solution for the city’s revenue woes.
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