Toronto to Vote on Billboard Tax

In October, the Toronto City Council will vote on – and many think pass – new bylaws for outdoor signs and a billboard tax. Revenue from the tax will fund enforcement. The tax, the final form of which isn’t yet articulated, will be lower than projections by the Out-of-home Marketing Association of Canada (OMAC), said Ann Borooah, Toronto’s chief building official.

Earlier this year, OMAC estimated that tax proposals on the table then amounted to an industry-crippling 25% of revenue. While it won’t be the first tax on billboards in North America, she says, it’s notable for its use of taxation as a regulatory tool.

Currently, the Toronto initiative is backed by the efforts of Rami Tabello, a former pension-fund consultant who founded the nonprofit Illegal Signs Canada (IllegalSigns.ca). Its mission statement states: “Our hobby is destroying illegal billboards with the rule of law.” Eleven volunteers troll for billboard infractions and report them to city officials.

Vermont, Maine, Hawaii, and Alaska ban billboards outright. In Philadelphia, the Society Created to Reduce Urban Blight claims it has convinced the city to remove 1,000 illegal billboards. In Los Angeles, the recently formed Coalition to Ban Billboard Blight works to stem the proliferation of digital billboards. Similar efforts exist in Houston, Tucson, and other smaller U.S. cities.

Many think consumers’ ability to avoid TV ads with DVRs has contributed to OOH’s current popularity. OOH presents its message, and consumers have little choice, other than turn their heads away. Yet, billboards are generally rated as one of the least annoying forms of advertising. Also, billboard content is protected by the right to commercial free speech.