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so if a house in vaughan is worth 500k and a house in toronto is worth 500k, the house in vaughan pays more dollars in taxes per year?

They should probably pay way more than TO residents for the same square foot home. For $500k in Toronto you'll get an 1100 sq apt or a much smaller house - ie. the relative amount of services used by a TO resident is, I suspect, much less than that of a Vaughan resident. Also the per home usage of services would be much higher than in TO due to greater density.
 

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