Council considering municipal alcohol, tobacco, and land transfer taxes

Support TNI Subscribe

Councillor Maureen Wilson says that the city should study these other revenue tools since the total financial pressures facing the city over the next 10 years is estimated at $22.8 billion. Pictured: Councillor Maureen Wilson. Photo Credit: City of Hamilton. 

Hamilton City Council recently voted to have staff study the “legislative requirements, framework, and implementation plan” to add new municipal taxes including parking levies in high traffic areas, a tiered land transfer tax, and alcohol and tobacco sales taxes.

The motion was brought forward by Councillor Maureen Wilson (Ward 1 – Chedoke-Cootes-Westdale) and seconded by Councillor Tammy Hwang (Ward 4 – Hamilton East).

The motion passed in a 10 to 4 vote.

Wilson says that the city should study these other revenue tools since the total financial pressures facing the city over the next 10 years is estimated at $22.8 billion.

She added that municipalities are faced with a limited fiscal framework, while being expected to address large-scale problems including affordable housing and infrastructure needs.

Her motion also notes that “in the absence of other non-residential property tax revenue, property taxes will become less affordable for more people over the next few years while the need for local investments will continue to grow.” 

Staff will be reporting back with the steps necessary to action and implement each tax, the length of time it would take to implement, the estimated amount of revenue that could be generated, and a scan of what other municipalities are doing.

Councillor Nrinder Nann (Ward 3 – East Hamilton Centre) was among those who voted in favour of Wilson’s motion.

Nann said: “The thing that’s been needed most clearly for a long time now is a new diverse, predictable, and equitable way to fund the work that cities do.”

She added: “The only way we’re going to ever be able to come to the table with real solutions is with fiscal tools.”

The motion was also supported by Mayor Andrea Horwath, who explained, “I really believe that it’s incumbent upon us as governors, as people who are responsible for the City of Hamilton, to look at all options. We might not implement all options but certainly head in the sand is not the way to go.”

But the motion also faced strong opposition from some councillors. 

Councillor Matt Francis (Ward 5 – Hamilton East-Stoney Creek), voted against the motion and argued, “Council does not need a new tax. This Council needs fiscal responsibility. This is going to be seen as just another tax grab with no guarantee to lower the property tax burden.”

Councillor Mike Spadafora (Ward 14 – West Mountain) agreed with Francis, saying, “We’ve got an NDP-Liberal federal government right now that is implementing carbon taxes, capital gains taxes, now we’re looking at land transfer taxes, tobacco, alcohol, parking lots.”

Instead, Spadafora suggested, “I think we can find ways to do internal audits and reviews to see where we can save or become more efficient before we start looking at taxing our residents more than they’re already taxed.”

Voting Results

Councillor M. Wilson’s motion (seconded by Councillor Hwang) CARRIED by a vote of 10-4.

IN FAVOUR (10): Mayor Andrea Horwath and Councillors Maureen Wilson (Ward 1 – Chedoke-Cootes-Westdale), Cameron Kroetsch (Ward 2 – Downtown Hamilton), Nrinder Nann (Ward 3 – East Hamilton Centre), Tammy Hwang (Ward 4 – Hamilton East), Esther Pauls (Ward 7 – Central Mountain), John-Paul Danko (Ward 8 – West/Central Mountain), Mark Tadeson (Ward 11 – Glanbrook-Binbrook-Mount Hope), Alex Wilson (Ward 13 – Dundas-Central Flamborough), Ted McMeekin (Ward 15 – East Flamborough-Waterdown)

AGAINST (4): Councillors Matt Francis (Ward 5 – Hamilton East-Stoney Creek), Tom Jackson (Ward 6 – East Mountain), Jeff Beattie (Ward 10 – Stoney Creek-Fruitland-Winona), Mike Spadafora (Ward 14 – West Mountain)

ABSENT (2): Brad Clark (Ward 9 – Upper Stoney Creek, Craig Cassar (Ward 12 – Ancaster-West Flamborough)

Your donations help us continue to deliver the news and commentary you want to read. Please consider donating today.

Support TNI

Local

  • Politics

  • Sports

  • Business

  • Copy link
    Powered by Social Snap