Mississauga Mayor Carolyn Parrish is slamming a proposal by a city councillor to institute a temporary freeze on property tax late fees, calling it a “pre-election gimmick” that would cost the municipality money.
Ward 2 Councillor Alvin Tedjo had proposed waiving late fees and interest charges for all taxpayers for a three-month period in response to the surging oil prices and rising inflation being faced by many residents amid the conflict in Iran.
His motion noted that in 2025 Mississauga collected $25 million in property tax late fees, which was more than double what was expected.
His motion, however, ultimately failed following a 6-6 vote by Mississauga City Council on Wednesday night.
In a statement, Parrish said that the proposal was essentially a “tax penalty holiday” for the four per cent of residents who “don’t pay their taxes on time.”
“63 per cent of what the city collects is transferred to Peel Region and education. It must be paid on time,” she explained. “If it is not paid on time, Mississauga must borrow the money ($640M), with interest added to the city’s budget.”
Tedjo had argued that with property taxes set to rise 5.2 per cent in Mississauga this year, the freeze could “help stabilize households, local businesses, and support local economic activity” during challenging economic times.
But Parrish said that the move could have carried steep financial consequences for Mississauga, as “there is no way of knowing” how many residents would take advantage of the program and how many millions of dollars the city “would have to borrow to transfer taxes to the region and to school boards.”
“This motion was a pre-election gimmick,” Parrish said. “It failed.”
Mississauga’s municipal election will be held on Oct. 26.