Tenants pay council tax, not landlords.

Except where classified as a HMO.

See this is ridiculous. In Ontario property taxes are paid by the landlord. It's easier to enforce when you are dealing with the owner.

council tax pays for a lot of individual local government services (state level in US terms)

Ontario property taxes == UK council taxes. I should have made that clearer.

Collecting from property owners is easier than collecting from tenants.