Toronto City Hall is preparing to write off approximately $4.3 million in uncollectable fines, property taxes, and other amounts owed to the municipality. The general government committee is set to review the matter on May 11 before it proceeds to City Council for final approval later this month.
Breakdown of Write-Offs
A report prepared for the committee indicates that the city's chief accountant has authorized the write-off of 8,022 fines issued under the Provincial Offences Act, totaling $3,019,028. These fines typically involve violations such as speeding, bylaw infractions, and TTC-related offenses. While most cases involve deceased debtors or defunct businesses, more than $670,000 in fines were written off because collection efforts had been exhausted or the debtor could not be located.
The report states: "The city makes every effort to collect unpaid fines. Collection tools utilized by court services include collection agencies, tax roll, civil enforcement, licence suspension and plate denial."
Other Debts Being Written Off
In addition to fines, $1,008,896 owed for billable services is also being written off. Nearly half of that amount, $402,108, was owed to Toronto Water. Other city divisions with total write-offs exceeding $100,000 include seniors services and transportation services.
The city is also canceling $299,458.16 in property tax accounts from previous years, some dating back to 1994. A significant portion comes from four accounts at 399 The West Mall, the address of the Etobicoke Civic Centre, which collectively owed more than $57,000 in fees and interest from the 1995 tax year. Another $87,000 is tied to a single address at 3541 Finch Ave. E., now a field next to Saint Aidan Catholic School, with debts also dating to 1995.
Financial Impact and Trends
The total write-offs for the 2025 fiscal year amount to just over $4.3 million. However, the report notes that this does not represent a "financial impact" because the figures "are not recognized as revenue until paid or unless there is a reasonable expectation of collection."
An attached breakdown shows that some write-offs are for services already delivered. For example, solid waste management services is writing off $35,043 in invoices for dumping fees and bin sales. In some cases, individual debts have been negotiated down, such as $8,118 owed for election sign removals and late payment charges, which was reduced to $3,200.
City Hall's corporate real estate management division is writing off $30,186 and $12,664 owed by unnamed tenants. The former involved steep invoices for repair, maintenance, and insurance costs, while the latter is a non-profit organization "experiencing financial hardship." The division's executive director approved both write-offs given the "nature of the tenants' work within the community" and their inability to pay.
Comparison to Previous Years
While representing missed revenue, the numbers show improvement from the 2024 fiscal year, when write-offs totaled over $6.2 million. They are also significantly better than the 2023 fiscal year, when $17 million was written off, a figure inflated by $6 million in Provincial Offences Act fines against defunct companies.
The general government committee will consider the matter on May 11 before it goes to City Council later this month.
