On Municipal TaxationPublished on March 22, 2021
MPP Anand's thirty-sixth Members' Statement was on the topic of "Municipal Taxation", delivered on 22 March 2021.
See full transcript below:
"Speaker, five Ontario airports located on federal land, including Pearson in my riding, make payment in lieu of property taxes, or PILT, to their host municipalities. PILT is calculated based on the number of passengers, paid two years in lag and capped at a 5% increase each year, and there is no limit on decreases.
COVID has impacted all of us. Here at home, the number of passengers has reduced to 27% of pre-COVID levels. As the aviation industry is projected to recover slowly, the GTAA is expected to recover in five to seven years. However, due to the 5% increase cap, PILT will not return to pre-COVID transfers for another 35 years, resulting in a massive loss of revenue for the city of Mississauga for 25 years.
At this time, it is worth noting that the GTAA is also going through a tough time. Despite the devastating impact of COVID, it has paid $40 million in 2020 and will be paying $42 million in 2021, and has fulfilled their commitment so far—and I thank them for that. In addition, all the airport tenants paid $25 million in 2019 to the city on top of PILT.
Mr. Speaker, COVID has taught us one thing: When we work together, we can overcome the greatest challenges. Tough times call for tough action. That is why I support the removal of the 5% cap, and I look forward to co-operation between the government and the GTAA, to work together and overcome the challenging time ahead."