A motion that sought to give Mississauga residents and businesses the option to put off paying late penalties and interest fees on their property taxes by a few months was narrowly rejected by city council this week, with the mayor characterizing the proposal as “a pre-election gimmick.”

Tabled by Ward 2 Coun. Alvin Tedjo and seconded by Ward 11’s Brad Butt, the motion asked that the City of Mississauga allow a three-month pause in late penalty/interest fee payments that would be in effect from July 2 until Oct. 2.

The idea, noted Tedjo, was to provide a bit of a financial break with residents facing “rising costs of living, inflation and economic uncertainty.”

Putting in place such a pause would “help stabilize households and local businesses, and support local economic activity,” the motion’s preamble argued.

After discussion on Wednesday at city council, the motion failed — with six votes in favour and six, including Mayor Carolyn Parrish, against. However, council did agree unanimously to have city staff study the matter further and devise a plan for some tax relief measures for residents and businesses in 2027.

Mayor Carolyn Parrish called a failed motion this week at council “a pre-election gimmick.”

In a statement released late Wednesday afternoon, Parrish said the “tax holiday” (as the motion was presented) was, “in fact, a tax penalty holiday for those who don’t pay their taxes on time.”

The mayor noted that 96 per cent of Mississauga taxpayers “are paying on time or have balances of only $100 owing.”

Parrish said council voted to reject the motion after senior city staff explained a late penalty/interest fee pause “would apply only to the city’s 37 per cent portion of the property tax,” with the remaining “63 per cent of what the city collects transferred to Peel Region and (for education taxes).”

That amount sent out of Mississauga “must be paid on time,” the mayor said in her statement. “If it is not paid on time, Mississauga must borrow the money ($640 million), with interest added to the city’s budget.”

Parrish also argued that under the proposal tabled by Tedjo, “those who normally pay their taxes on time could also stop paying for three months. There is no way of knowing how many would do so” and, therefore, how many millions of dollars the city would have to borrow to transfer taxes to the region and for education.

“The motion was a pre-election gimmick. It failed,” Parrish concluded in her statement.

Tedjo announced on Thursday morning his plans to run against Parrish for the mayor’s post in this year’s municipal election. Candidates can officially register beginning Friday at 8:30 a.m.

Ward 2 Coun. Alvin Tedjo, who’s running for mayor this year, said he’s “disappointed that Mayor Parrish sees no urgency to act on the affordability crisis in our city.”

In a letter to members of council prior to Wednesday’s meeting, the mayor also noted that what the motion proposed amounted to “a free loan from the city to any taxpayers who choose to avail themselves of the offer without eligibility screening. It is not targeted to those who need relief most. Further, a tax and penalty ‘holiday’ creates a liquidity gap — not a cost reduction.”

The letter concluded with Parrish further describing the motion as “a weak, inefficient and ineffective policy proposal which has short-term appeal, shifting the tax burden forward rather than reducing it. It is a temporary measure that has no jurisdiction over a larger portion of the final property tax bill and can create problems for the city, risking future budget uncertainty that can result in future tax increase.”

She noted that taxpayers who, under the proposal, would choose to defer three installments would still have to make all three payments by the end of October.

“It’s a very short delay in payments for very little savings in penalties for each account, while costing the city more than $6-7 million at the expense of all taxpayers, including those who diligently pay their taxes on time.”

In a press release following Wednesday’s council meeting, Tedjo expressed disappointment the motion had failed.

“At a time of unprecedented economic pressure on our country, I believe that the City of Mississauga needs to do its part to reduce the burden on our taxpayers,” he said. “This temporary tax holiday would have provided immediate relief to those struggling to keep up with skyrocketing property taxes, so I am disappointed that Mayor Parrish sees no urgency to act on the affordability crisis in our city.”

The Ward 2 councillor added that in 2025 the city collected some $25 million in interest fees from residents and businesses “who struggled to pay their rising property taxes on time — $12.8 million more than the city anticipated.

“This demonstrates the pressure that sharp tax increases have put on local taxpayers,” Tedjo said.


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