Land Value Capture

Fund Transit with Land Value Capture, no new taxes needed

New taxes on sales, gas and HOV lanes may be “fair and balanced” but they will be aggressively opposed and politically damaging to any government imposing them.

A far more politically defensible way to finance Toronto transit is Land Value Capture. The Ontario and municipal governments should finance the new transit by collecting the rise in land value that the new projects produce — a process that makes transit self-financing, with no need for other taxes.

Google the following:
Land Value Capture as a Tool to Finance Public Transit Projects in Canada

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Land Value Capture makes Transit Self-financing

Letters:
Tolls, Taxes: Globe and Mail: April 19, 2013

Ontario Premier Kathleen Wynne is right to forge ahead with Toronto-area transit upgrades, even over the complaints of parochial mayors. However, instead of new taxes and tolls – which will pit suburban dwellers against downtown residents and businesses – the new transit should be financed by collecting the rise in land values that the new infrastructure itself will generate.

Land-value capture makes warranted transit “self-financing,” with no need for politically unpopular new tolls or taxes.

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