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Universal Times Magazine > Blog > World > What is Rain tax in Canada – Explained
World

What is Rain tax in Canada – Explained

Shweta
Last updated: 2024/03/28 at 10:08 AM
Shweta
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In Canada, plans are in place to introduce a ‘rain tax’ next month. The Canadian city of Toronto is considering to implement a new type of tax that aims to address the problem of stormwater management. 

Contents
What is stormwater? What is stormwater charge?

According to the Toronto government’s official website, the city’s municipal authority is considering the introduce a ‘rain tax’ and the plans are in place for its implementation in April.

Toronto City’s official website stated, “The government in collaboration with water users and interested parties is processing a “Stormwater Charge & Water Service Charge Consultation” program in a bid to tackle stormwater management, commonly called ‘rain tax’.

The authorities are gathering feedback from water users and interested parties on the possible implementation of a stormwater charge and water service charge and are inviting water users to take a survey before April 30. 

What is stormwater? 

“Stormwater is rain and melted snow. When not absorbed into the ground, stormwater runs off hard surfaces, onto streets, down storm drains and through a network of pipes that carry it into local waterways,” stated the official government website.

Under this plan, the authorities plan to implement a ‘stormwater charge’ across all property classes. Additionally, they will put in place a program that offers stormwater charge credits for larger properties, alongside administrative water charges that are referred to as a “water service charge.” 

The website noted that a large amount of stormwater can overwhelm the city’s sewer system, which can lead to flooded basements and impact the surface water quality of the city’s rivers, streams and lakes.

What is stormwater charge?

Toronto’s residents already pay water utility bills that include costs of stormwater management. The website states, “A stormwater charge would be based on the impact of a property with respect to stormwater runoff to the City’s storm sewer system, which is represented by the amount of hard surface area on a property. Hard surfaces include roofs, asphalt driveways, parking areas and concrete landscaping.”

Under the stormwater charge proposal, properties will be targeted based on their impact on stormwater runoff into the city’s storm sewer system which will be measured by the amount of hard surface area on the property.

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Shweta March 28, 2024 March 28, 2024
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