Name: Martin Peeters
Issue: Infrastructure/Transit: How to make it easier to get around Toronto
What’s the big idea: What if Toronto treated the land dedicated to roads like most other land, as a source of revenue? A homeowner pays thousands in property taxes and none of it is used to maintain the property (pay the electricity, fix the roof). It all goes to pay for city services. The same goes for businesses. The GTAA has to pay rent for the land at Pearson Airport and a form of property tax, yet none of that money helps develop the airport. When you park your car the landowner has to pay property taxes. Green P parking paid the city $17.8 million in property taxes and since they are owned by the city paid another $43.6 million from parking revenues (2012 numbers). Why shouldn’t all land in Toronto be treated in a similar manner?
How will the big idea work: The free land devoted to roads leads to a huge economic distortion. To have an effective market for land use in Toronto it needs to be treated similarly by governments without special privilege given to roads. Removing this distortion will lead to far more efficient land use favouring transit-oriented development which is far more efficient.
How much will your big idea cost, and how would it be funded: Other then initial start-up costs, this idea generates revenue.
How will you implement your big idea: This should be modeled after Green P parking. Create an arm’s length, city-owned organization (Green R ?), tax the roads at a fair rate likely generating hundred of millions in revenue and give this new organization revenue-generating tools (tolls, license fees) so the tax can be paid. Any excess revenue above property taxes would also go to the city.
Do you have an idea on how to make the GTA a better place to live? Submit it here to participate in our year-long project.