Act
Red Tape Reduction - Supporting Municipal Incentives for Economic Growth
Regulation Number(s):
Instrument Type:
Act
Bill or Act:
Municipal Act, 2001, City of Toronto Act, 2006
Summary of Proposal:
Currently, the Municipal Act, 2001 and City of Toronto Act, 2006 prohibit municipalities from providing direct or indirect assistance to any manufacturing, industrial or commercial businesses.
MMAH is proposing legislative amendments to the Municipal Act, 2001 and City of Toronto Act, 2006 to streamline the province's process for granting exemptions to municipalities from this prohibition to support provincial investment attraction.
In particular, a proposed Lieutenant Governor in Council (LGIC) regulation-making authority would allow the LGIC to authorize a municipality to provide assistance to a particular recipient (i.e., allow a municipality to provide specified assistance to a prescribed recipient, despite certain statutory limits), if the LGIC was of the opinion that it is necessary or desirable in the provincial interest to attract investment in Ontario.
Establishing a targeted, streamlined exemption process that enables the LGIC to make regulations to support provincial investment attraction would help make Ontario nimble in competing for investment, while still helping to ensure the province safeguards the fiscal health of municipalities.
MMAH is proposing legislative amendments to the Municipal Act, 2001 and City of Toronto Act, 2006 to streamline the province's process for granting exemptions to municipalities from this prohibition to support provincial investment attraction.
In particular, a proposed Lieutenant Governor in Council (LGIC) regulation-making authority would allow the LGIC to authorize a municipality to provide assistance to a particular recipient (i.e., allow a municipality to provide specified assistance to a prescribed recipient, despite certain statutory limits), if the LGIC was of the opinion that it is necessary or desirable in the provincial interest to attract investment in Ontario.
Establishing a targeted, streamlined exemption process that enables the LGIC to make regulations to support provincial investment attraction would help make Ontario nimble in competing for investment, while still helping to ensure the province safeguards the fiscal health of municipalities.
Analysis of Regulatory Impact:
If the proposed regulation-making authority is created and used, and if a municipality provides this assistance to a business:
-The municipality may forgo some revenue that it may otherwise have collected from the business. Depending on the assistance provided, the municipality may be required to raise this forgone revenue from other sources.
-There could also be many benefits to the local community and the province, including direct and indirect job creation.
-Businesses that receive the assistance would benefit as it would help to lower their costs of establishing their business in the specified municipality, which could translate into more investments and job creation for the local community and the province.
-There may be some increased administrative costs for municipalities to track the assistance that is provided.
-The municipality may forgo some revenue that it may otherwise have collected from the business. Depending on the assistance provided, the municipality may be required to raise this forgone revenue from other sources.
-There could also be many benefits to the local community and the province, including direct and indirect job creation.
-Businesses that receive the assistance would benefit as it would help to lower their costs of establishing their business in the specified municipality, which could translate into more investments and job creation for the local community and the province.
-There may be some increased administrative costs for municipalities to track the assistance that is provided.
Further Information:
Municipal Act, 2001
Proposal Number:
24-MMAH009
Posting Date:
April 10, 2024
Comments Due Date:
May 10, 2024
Contact Address:
John Ballantine
Manager, Financing and Infrastructure
Municipal Finance Policy Branch
Ministry of Municipal Affairs and Housing
Manager, Financing and Infrastructure
Municipal Finance Policy Branch
Ministry of Municipal Affairs and Housing