Billboard tax to be fought in court by Toronto sign companies

Toronto - Sign companies in the Greater Toronto Area are ready to take the municipal government to court over its billboard tax that is expected to generate more than $10 million in revenue.

Last week, Pattison Outdoor Advertising LP and Pattison Sign Group and an association that represents five of Canada’s biggest sign companies filed two legal notices against the city of Toronto with the Ontario Superior Court of Justice over the billboard tax, according to the Toronto Star. The notices request a hearing to fight the by-law where sign companies would pay an annual tax ranging from $850 to $24,000 depending on the size and type of billboard. The billboard tax took into effect on Monday. Sign companies are arguing that the tax is indirect; therefore, the tax is unlawful under the City of Toronto Act because they will be forced to pass the financial burden onto advertisers and landowners. “Because of the economics of its business, Pattison will recover the (tax) by reducing the payments it makes to landowners and by increasing the rates it charges to advertisers ... (the tax) will be passed on to persons not assessed the tax, and is an indirect tax,” stated one notice by Pattison. Nevertheless, Toronto officials are discussing where the revenues should be allocated to. Councilor and Toronto Budget Chief, Shelley Carroll, wants the revenues to fund arts and had asked the executive committee to create a long-term plan that would meet the funding targets for its Cultural Plan, which was implemented in 2003, reports the Globe and Mail. "We'd go out the door to campaign really having left a policy statement for staff to build a budget on. That's what's key,” said Carroll.