TORONTO, May 31, 2013 /CNW/ - Leading voices from Canada's real estate
industry have joined together supporting efforts by Metrolinx to
improve transit in the Greater Toronto and Hamilton Area (GTHA) through
dedicated funding. However, the industry is greatly concerned about the
impacts of a new parking tax being considered by the Province of
Ontario as recommended in Metrolinx's recent report.
In response to the Metrolinx report, REALpac Chairman Stephen Taylor
said, "We support efforts by the government to improve transit.
However, when it comes to funding, everyone should be treated equally
and fairly. This parking tax unfairly targets only one industry."
On Monday 27 May 2013 Ontario's primary transit agency, Metrolinx,
issued a report to Ontario Premier Wynne outlining a plan - The Big
Move - for a Greater Toronto and Hamilton Area (GTHA) public transit
build out. The plan proposes funding come from four new taxes including
a new parking tax for off-street non-residential parking at an average
rate of $.25 per parking spot per day. However, depending on how the
new parking tax is implemented, preliminary estimates indicate it could
increase operating costs from $4.00 to $7.00 per square foot depending
on a properties value, totaling $350 million per year.
Industry concerns over a new parking tax are predicated on the facts
A parking tax will have a negative impact on businesses and economic
development in the GTHA.
A parking tax unfairly targets only one industry.
A parking tax is a hidden tax paid by the supplier of parking and their
tenants and therefore has no impact on transit use behavior or
A parking tax will be difficult and costly to implement and maintain.
A parking tax is double taxation, as parking spots are already taxed as
part of the value of a property, contributing to property taxes paid.
Municipal bylaws establish minimum parking requirements.
A parking levy on free parking is a hidden tax payable by tenants of
shopping centres, offices and industrial facilities and not by users.
Therefore, it will have no impact on reducing congestion.
Ms. Patti Parente, International Council of Shopping Centres (ICSC)
Chair of Government Relations, concluded, "We will continue to work
with government towards improved and dedicated transit funding. Funding
should be broad-based as everyone must contribute equally to solve our
congestion problem. A parking tax unfairly targets a select segment of
the economy which is grossly punitive and will do nothing to alter
The organizations and trade associations opposing the new parking tax
represent well over $180 billion in assets in Canada and include; the
Real Property Association of Canada (REALpac), the Building Owners and
Managers Association Toronto (BOMA Toronto), the International Council
of Shopping Centres (ICSC), the Commercial Real Estate Development
Association - Toronto Chapter (NAIOP), and the Building Industry and
Land Development Association (BILD).
Development and construction of commercial and residential real estate
buildings, and subsequently their daily operations, directly creates
thousands of jobs and adds tremendous value to the Canadian and GTHA
GDP. In addition, the sector provides workspace for millions of
Canadians and places for Canadians to shop, eat and play.
About the Real Property Association of Canada
REALpac is Canada's premier industry association for investment real
property leaders. Our mission is to collectively influence public
policy, to educate government and the public, and to ensure stable and
beneficial real estate capital and property markets in Canada. To learn
more about REALpac and see a list of our member companies visit http://www.realpac.ca/?page=OurMembers.
REALpac members currently own in excess of $180 Billion CAD in real
estate assets located in the major centres across Canada. Members
include real estate investment trusts, publicly traded and large
private companies, banks, brokerages, crown corporations, investment
dealers, life companies, lenders, and pension funds.
About BOMA Toronto
The Building Owners and Managers Association of the Greater Toronto Area
(BOMA Toronto) is a not-for-profit organization established in 1917.
BOMA Toronto's membership includes over 750 real estate professionals,
representing 80 per cent of all commercial and industrial real estate
companies in the GTA and beyond. These individuals are all leading
building owners, property and facility managers, developers, leasing
agents, and service providers. BOMA Toronto helps members ensure tenant
satisfaction, maximize profits, and enhance asset values for building
owners and investors through market intelligence, education,
networking, and government advocacy.
About ICSC - International Council of Shopping Centres
Founded in 1957, ICSC is the premier global trade association of the
shopping centre industry. Its more than 58,000 members in over 90
countries include shopping centre owners, developers, managers,
marketing specialists, investors, retailers and brokers, as well as
academics and public officials. As the global industry trade
association, ICSC links with more than 25 national and regional
shopping centre councils throughout the world.
About NAIOP - Toronto Chapter
NAIOP is the Commercial Real Estate Development Association and is the
leading organization for developers, owners and related professionals
in office, industrial and mixed‐use real estate. NAIOP comprises 15,500
members in North America. NAIOP advances responsible commercial real
estate development and advocates for effective public policy. For more
information, visit www.naiop.org.
The Greater Toronto Chapter of NAIOP, founded in 1977, has become the
premier ʺmeeting placeʺ for a diverse and influential mix of the
commercial real estate industryʹs top companies and top performers.
With more than 1,400 members, BILD, formed through the merger of the
Greater Toronto Home Builders' Association and Urban Development
Institute/Ontario is the voice of the land development, home building
and professional renovation industry in the Greater Toronto Area. We
are proudly affiliated with the Ontario and Canadian Home Builders'
SOURCE: Real Property Association of Canada
For further information:
Carolyn Lane, MBA, MA - VP, Membership, Marketing & Communications