October 2019
Ministry Surveying Municipalities on Gas Tax Fund

2019-10-08 9:31:08 AM


The Association of Municipalities Ontario (AMO) last week reported that the Ontario Ministry of Transportation (MTO) is surveying local governments to help determine how well the Ontario Gas Tax is meeting the needs of expanding and improving municipal transit.

The Ministry is seeking feedback on the following:

  • The municipal own source funding cap
  • The allocation formula
  • Baseline funding requirements
  • Local/Regional Gas Tax funding allocations

 

Funding for Ontario’s Gas Tax Program is determined by the number of litres of gasoline sold in the province and provides municipalities with two cents per litre of provincial gas tax revenues. This funding must be used towards public transit capital and/or operating expenditures at their discretion.

The provincial government’s budget for 2019 announced that the Ontario Gas Tax Fund would be reviewed and the previous promise made by the Liberal government to double the gas tax funding would be cancelled. This government cited the need to restore Ontario’s budget as to why the doubling was cancelled.  

In addition to the Gas Tax Fund review, the provincial government earlier this year also announced that the Ontario Community Infrastructure Fund (OCIF) will be reviewed and redesigned. OCIF currently provides funding to support core infrastructure projects, such as roads and bridges, to rural and northern municipalities, as well as municipalities with 100,000 or fewer residents.

These two programs represent a significant portion of infrastructure funding for Ontario’s governments. AMCTO has regularly advocated for a continued investment in infrastructure due to a widening $60 billion infrastructure gap. Continued investment is necessary to the province’s local governments, including those municipalities that rely on programs, such the provincial Gas Tax Fund and OCIF, to ensure municipalities can respond to the needs of their communities.

For more information, please see below:

AMO: Ontario Gas Tax for Transit Program Review and the Ontario Community Infrastructure Fund

AMO Report: Ontario Dedicated Gas Tax Funds for Public Transportation Program Review and the Ontario Community Infrastructure Fund


 


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