For Immediate Release
November 4, 2021
STATEMENT: Mayor Crombie Responds to Regulation Change on Airport Payments In Lieu of Taxes
“Today, the Government of Ontario released its 2021 Ontario Economic Outlook and Fiscal Review. I believe this is a plan that builds the foundation for Ontario’s recovery and invests in the key areas that will have real and significant impacts on municipalities.
I am particularly grateful that the Government of Ontario will temporarily suspend the five per cent cap on the payments made in lieu of property taxes (PILTs) that airports make to municipalities. These airports include Billy Bishop Toronto City Airport, London International Airport, Ottawa International Airport, Mississauga’s Toronto Pearson International Airport, and Thunder Bay International Airport.
I want to thank Premier Doug Ford, Minister Peter Bethlenfalvy, the provincial cabinet, and Mississauga MPPs for listening and making a much- needed change to an outdated regulation. I also want to thank Mississauga City Council for advocating for this change.
Historically, PILTs have been based on a per passenger rate, with a 5 per cent cap on annual increases. Along with City of Mississauga Staff, I have been strongly advocating for the removal of this cap for many years, however the need for removal became urgent due to the COVID-19 pandemic.
With an unprecedented decline in airline passenger traffic, the City of Mississauga will see another $21 million loss from the PILTs in 2022. We do, however, expect passenger travel to dramatically increase as we enter a new phase of the pandemic.
If the PILTs cap had been kept, the City of Mississauga would have seen only a slight increase in PILTs revenue when compared to the lowest points of the pandemic, even though airline passenger travel could be increasing at an exponential rate.
While the math is a bit complicated, the impact of the cap suspension on the City of Mississauga is simple to understand: it means we will avoid a major budget shortfall of more than $529 million over the next 35 years. This is a major development for the City of Mississauga, as it will help ensure we can continue to provide residents with the world-class services they expect and deserve.
On behalf of the City of Mississauga, I once again sincerely thank Premier Ford, Finance Minister Bethlenfalvy, the provincial cabinet and Mississauga MPPs for making this historic change. It is genuinely difficult to fully express how grateful I am for this decision.
I was also very pleased to see more supports in the 2021 Ontario Economic Outlook and Fiscal Review for home and community care, enhancements to the Ontario Seniors’ Home Safety tax credit and the introduction of a new Ontario Staycation Tax Credit to encourage travel within the province. Mississauga has an incredible tourism and hospitality sector and I encourage those planning vacations to come to Mississauga and experience our incredible festivals, stunning waterfront, and delicious and diverse restaurants.
I look forward to continuing to work with the Government of Ontario as Mississauga continues its recovery from the COVID-19 pandemic.”