‘Rain tax’ in Canada: What does it mean and why people are not happy about it

As per the latest development, Canada is all set to introduce what is colloquially termed as a 'rain tax' from next month. If reports are to go by, this move is aimed at addressing the challenge of stormwater management in the Canadian city of Toronto.

As per the official website of the Toronto government, the municipal authority is contemplating the introduction of this 'rain tax', with a slated implementation in April.
The Toronto City's official website states the government, in collaboration with water users and stakeholders, is actively engaged in a ‘Stormwater Charge & Water Service Charge Consultation’ program. This initiative has been, reportedly, designed to tackle stormwater management issues, commonly referred to as the 'rain tax'. The authorities are actively collecting feedback from water users and stakeholders regarding the potential implementation of a stormwater charge and water service charge, inviting participation in a survey before April 30.

What does stormwater mean?

Stormwater, as defined by the official government website, constitutes rain and melted snow. When this stormwater is not absorbed into the ground, it runs off hard surfaces, such as streets, roofs, and driveways, eventually finding its way into local waterways through storm drains and pipes.
As per the reports, the authorities plan to introduce a 'stormwater charge' applicable across all property classes. Moreover, a program will be established to provide stormwater charge credits for larger properties, in conjunction with administrative water charges known as a ‘water service charge’.

The website highlights the adverse consequences of excessive stormwater, which can overwhelm the city's sewer system, leading to flooded basements and deteriorating the surface water quality of rivers, streams, and lakes.

The stormwater charge proposal aims to augment existing water utility bills borne by Toronto residents. This charge is said to be based on the property's impact concerning stormwater runoff into the city’s storm sewer system, determined by the extent of hard surface area such as roofs, driveways, and parking areas. Properties will be evaluated based on their contribution to stormwater runoff, thereby delineating their responsibility in managing this environmental challenge.