The Town of Newmarket is preparing to move forward with a 2.99 per cent tax increase for 2025.
Staff presented the proposed increase to council Nov. 11, which would amount to about $75 more on the annual tax bill of an average Newmarket home assessed at $711,000 by the Municipal Property Assessment Corporation, currently based on 2016 market values.
Newmarket Mayor John Taylor said the increase is below inflation at a time when many municipalities are considering higher-than-normal tax rate increases due to turbulent economic times.
“We’re really trying as hard as we can to keep the impact as minimal as we can,” he said. “It’s a very responsible and balanced approach.”
The proposed increase comes in a bit lower than the 3.99 rate increase Newmarket had last year and the 5.5 per cent increase in 2023. The increase is in line with the target set by council earlier this year.
The operating budget includes a 1.49 per cent tax rate increase at a base level, plus an additional 1.5 tax rate increase dedicated to the town’s asset management fund.
The base increase is below inflation, estimated at 2.1 per cent in 2025. Staff said the town is experiencing a higher cost for goods and services going out to market.
Newmarket ratepayers will be seeing other increases. To help keep the tax increase lower, the town plans to increase user fees by about 3.1 per cent. This is higher than inflation, but staff justified it by noting that the town waived any increases in 2020 and 2021 amid the impact of the pandemic.
Councillor Victor Woodhouse praised the budget.
“To be able to continue our operations and provide the services the residents enjoy for 1.49 per cent (base increase), to me is an absolutely wonderful accomplishment,” Woodhouse said.
The town has maintained about a 1.5 per cent tax rate increase dedicated to future asset replacement for several years and is consistent with other municipalities, Taylor said. He noted it is important for future infrastructure replacement needs, such as bridge replacements.
“We’re trying to make sure we’re financially sustainable in the future and putting those dollars away is important,” Taylor said.
The mayor noted Newmarket's neighbours are considering higher tax rate increases, including Markham at 3.88 per cent, Aurora at 3.5 per cent, Richmond Hill at 4.4 per cent, Georgina at 4.9 per cent and Stouffville at 5.69 per cent.
Taylor said the town is committed to keeping its tax rate at least 10 per cent below the GTA average per capita.
“You don’t want to be the highest-tax municipality, but you don’t want to be the lowest one either,” he said.
Further budget review is on the council agenda, with plans to finalize and pass it in December.
