Toronto's expansion of property taxes: no panacea for urban financing?
Toronto's assumption of a land transfer tax places the city's financing doubly dependent on the peaks and valleys of the property market. The take looks attractive given the strength of a booming market in the City at present. It looked attractive in Cape Coral, Florida too : (The Mayor) was keen to build a new high school. He hoped to widen roads and extend the reach of the sewage system, limiting pollution from leaky septic tanks. He wanted to add parks. But then the US property crash happened, and property revenues crashed with it. What's it like in Cape Coral now? Last month, the city eliminated 18 building inspector jobs and 20 other positions within its Department of Community Development. They were no longer needed because construction has all but ceased. The city recently hired a landscaping company to cut overgrown lawns surrounding hundreds of abandoned homes. “People are underwater on their houses, and they have just left,” Mr. Feichthaler says. “That road wid...