Value for Tax Dollars: Looking Beyond the Tax Bill

Every election cycle, property taxes become one of the most discussed topics in Niagara-on-the-Lake. Residents often hear that taxes are too high, taxes are too low, or that another municipality is doing a better job.

The reality is that comparing municipalities is not as simple as looking at a tax bill.

A recent comparison shared by Newmarket Mayor John Taylor highlighted municipal tax levies per capita across Ontario. The data, based on the BMA Municipal Study and Fraser Institute analysis, ranked municipalities according to how much municipal tax levy is collected per resident.

What is interesting is not where Newmarket sits.

It is where Niagara-on-the-Lake would sit.

The Numbers

Niagara-on-the-Lake’s 2026 municipal tax levy is approximately $18.16 million.

With a population of approximately 20,863 residents, that equates to roughly:

$871 per resident

For comparison:

If Niagara-on-the-Lake were included in the study, it would likely be among the lowest municipal tax levies per resident in Ontario.

That is a remarkable statistic.

Why Is NOTL Different?

Unlike most municipalities, Niagara-on-the-Lake serves far more people than simply its permanent population.

We have:

• Over 3.5 million visitors annually

• More than $3 million annually in Municipal Accommodation Tax (MAT) revenues

• Approximately $3 million annually in parking revenues

• A strong winery, hospitality and tourism sector

• Significant commercial assessment that helps support municipal services

Simply put, visitors and businesses help contribute to the cost of running the Town.

This allows Niagara-on-the-Lake to maintain services while spreading costs across a broader economic base.

What Residents Actually Care About

While per-capita comparisons are interesting, homeowners don’t receive a bill based on population.

They receive a bill based on property assessment.

That is why looking solely at tax rates can also be misleading.

The better question is:

What value are residents receiving for their tax dollars?

What Taxpayers Receive

Niagara-on-the-Lake maintains:

• Heritage districts and heritage properties

• Community centres

• Playgrounds and parks

• Recreation programming

• Trails and open spaces

• Roads and infrastructure

• Libraries

• Fire protection

• Bylaw enforcement

• Tourism infrastructure

• Cultural events and facilities

All while serving millions of annual visitors.

Few municipalities of our size face the same level of demand.

The Hidden Costs of Tourism

Visitors enjoy:

• Queen Street

• Our parks

• Waterfront spaces

• Public washrooms

• Parking lots

• Heritage areas

• Trails

• Special events

These services require staffing, maintenance, infrastructure investments and ongoing replacement.

The challenge is balancing those needs while protecting taxpayers.

Fortunately, tourism revenues help offset many of these costs.

The Other Side of the Equation

It is easy to focus only on taxes.

However, taxpayers should also ask:

• What is the municipality’s debt?

• What services are being delivered?

• What infrastructure is being maintained?

• What investments are being made for future generations?

• What portion of costs are being offset by visitors and businesses?

A municipality can have low taxes by simply not investing in roads, facilities and infrastructure.

That is not a sustainable strategy.

Likewise, a municipality can have high taxes while delivering poor value.

Neither approach serves residents well.

The Niagara-on-the-Lake Advantage

Niagara-on-the-Lake is fortunate to have a unique economy.

Our tourism sector, hospitality industry, wineries, accommodations and commercial businesses help support municipal services that otherwise would fall directly on residents.

That does not mean we should stop looking for efficiencies.

It does mean we should recognize the value that our local economy brings to taxpayers.

The Real Conversation

Rather than asking whether taxes are high or low, perhaps the better question is:

Are residents receiving good value for their tax dollars?

When you consider:

• One of the lowest municipal levies per resident in Ontario

• Millions of dollars in visitor-generated revenues

• World-class heritage and tourism assets

• Significant investments in parks, recreation and community services

• A municipality that serves millions of visitors annually

Niagara-on-the-Lake has a strong story to tell.

The challenge is ensuring we continue to balance responsible financial management with the services and infrastructure residents expect today and future generations will need tomorrow.

Because value is not measured simply by the size of a tax bill.

It is measured by what that tax bill delivers.