For the first time since amalgamation 11 years ago, billboards in Toronto will be regulated and taxed under a single citywide bylaw. But a promise to use the revenue from the new tax to fund the arts remains up in the air until the city's 2010 operating budget is settled next year.
That was the final word from Toronto council at the end of a marathon debate on the sign bylaw that pitted lobbyists from the outdoor advertising industry against those advocating for public space and the arts.At the end of it, the former lobbyists said the tax - which is intended to bring in about $10 million - would more than erase the profits earned by billboard owners and could tax them out of business. "That's 25 per cent more than the profits for the industry," said Rosanne Caron, president of the Out-of-Home Marketing Association of Canada. She said the fallout of the new tax would be severe."There are several things that will happen. First there are advertising opportunities that will be lost for marketers," she said. "Advertising space for charities will go, and we make an annual contribution of $6 million. Obviously, the industry will have to weigh in on what they can do in terms of supporting those charities on an ongoing basis."Arts and public space activists, meanwhile, remained optimistic despite the fact council offered no assurance the approximately $9 million of revenue would go toward the arts. Council passed a motion from Budget Committee Chair Shelley Carroll asking the disposition of the tax revenues go to the budget committee, which she promised would be targeted toward the arts.That was good enough for Devon Ostrom of the group beautifulcity.ca "I think there's enough people on council (who) are wise enough to do that," Ostrom said. "The reason that was passed was to prevent nitpicky pet projects from coming forward."He said the tax, combined with the stricter regulations as to where signs can be placed, will have a serious impact on the city."It's going to put the city on the map for sure," he said. "Per capita spending will get up to the appropriate level for cities of our size. This is going to make an amazing city."Mayor David Miller supported the bylaw and said arts organizations can rest easy."2010 is a challenging budget year, there's no question about that," he said. "But the assurance (that money will go to the arts) is in the action of this council. We have increased the investment in the arts each and every year. The goal is to use the new revenues to achieve the goals of our cultural plans. But I think it's important to consider this in the overall budget setting process."He said the bylaw itself will put a cap on what until now has been a confusing and sometimes lawless sector of the economy."What the sign bylaw does is control the amount of advertising and the number of signs," he said. "There can't be new rooftop billboards in small business strips. And you do need to regulate this kind of marketing, otherwise the logic of the market says it will be everywhere."Miller scoffed at the idea the new tax would seriously harm the industry."Billboards are a license to print money," he said. "If you get a billboard license, that's there forever. And we at the city know what they're worth because we operate some ourselves."