Lashing out at levies

Angered by rapid increases in municipal lot levies, developers in Ontario want the government to reform these 'obscene' practices.

Abstract

This anicle has been reproduced with the permission of Canadian Building magazine, June 1988, Vol. 38 #6, editor John Fennell.

The conflict between developers and the municipal over the impact of municipal lot levies persists as the former feel that they are a form of economic abuse and political opportunism. In the present article, developers express their frustration with the levies and the lack of a government response. They cite the impact of the levies in different regions such as Vaughan Township, Mississauga and Newmarket where the costs of the levies are then passed on to homebuyers, increasing the costs of homes. The developers argue that there is no accountability in how the collected revenue is spent. The situation is exacerbated by the lack of a system in place for calculating the levies, which leaves them feeling robbed. The stalemate prompted the formation of a working group consisting of municipalities’ and developers’ representatives, and the ministry of Municipal Affairs to reach a consensus that would facilitate the formulation of a new policy to guide the imposing of fines. However, the government did not produce a new legislation due to political factors in the province. The developers were frustrated and angry over what they perceived as continued abuse. Regardless, there was some consensus from the working group on the development of comprehensive provincial legislation to ensure consistency and certainty for both parties. The agreement addressed several pertinent issues among them the municipal accountability of how revenue collected is used and the use a consent method of levy calculation. Despite the increased costs of housing, buyers have not been vocal in opposing them due to ignorance. The current trend will adversely impact the industry; the damage can only be reversed by government reforms through new legislation. Nonetheless, the leaders do not trust the developers to require the costs once the levies are decreased, and the latter do not trust the former to initiate change, hence the stalemate will persist.