By Faye Lyons, Vice President Government Relations & Advocacy, Oakville Chamber of Commerce

Oakville is at a crossroads. Our town’s aging stormwater infrastructure needs investment, no one disputes that. But as council debates a new stormwater tax, it’s essential we get the details right to avoid unintended consequences for the local business community.

Double Taxation? Not So Fast

Currently, Oakville collects $12 million annually for stormwater infrastructure through property taxes. The new proposal would introduce a standalone stormwater annual tax of $24 million, but there’s been no clear indication that the existing property tax allocation will be reduced or redirected. This raises a troubling question; are taxpayers going to be doubled charged for infrastructure funding?

The Town’s analysis suggests residential property owners pay a higher share in property taxes relative to their stormwater runoff. The proposed tax structure, based on runoff, will shift a significant portion of costs onto businesses. Local businesses are already facing rising costs, and a sudden, steep increase in taxes could force some to cut back, relocate, or even close. This increased tax will ripple through the community, impacting jobs, services, and goods.

An Oakville Chamber survey reveals a serious gap in awareness and understanding that cannot be overlooked. Nearly 80% of respondents said they were not aware of the proposed Stormwater Tax, and more than 80% admitted they do not understand the proposed fee structure. Over 60% indicated that incentives would need to exceed 50% before they would consider investing in conservation upgrades. These results show that the Town’s communication efforts have fallen short. Before any final decision is made, every affected business deserves a clear and straightforward explanation of how the tax will be calculated. A simple formula – such as Site Area (sq.m.) × $0.52/sq.m × 0.9 – would provide the clarity businesses are asking for.

If the stormwater tax moves forward, it must come with a fair and accessible credit system. Credits should be tied to the property, not the owner, and remain in place even if the property changes hands. The application process should be simple, with a two-week review period, and the maximum credit should be set at 50% for meeting Town requirements. The vague idea of “going above requirements” should be scrapped, it only creates confusion and delays.

Moreover, the Town should help business owners retrieve necessary documents and navigate the credit application process. Supporting our businesses through this change is good public policy and respectful of the business community.

Given the current economic climate and the lack of widespread awareness, now is not the time to rush. The Chamber recommends delaying the implementation of the stormwater tax until 2027. This would allow for more consultation, better communication, and a smoother transition for everyone.

The Oakville Chamber of Commerce supports funding for sustainable stormwater infrastructure. And we call on Council to proceed in a fair, transparent, and collaborative manner. Let’s work together to ensure the new stormwater tax strengthens our town, without undermining the businesses that make it thrive.

To learn more about the Chamber and our ongoing advocacy work on behalf of local businesses, please connect with us at info@oakvillechamber.com.