Say ‘no’ to municipal vehicle registration tax
It’s impossible to overstate how essential vehicles are to motorists who live and work in Ontario.
Whether it’s commuting to and from the city for work, transporting children to hockey games and ballet classes or shopping for groceries, car ownership remains a fundamental necessity for millions of men and women of all ages across the province.
Motorists who drive in Ontario also know that vehicle ownership costs are not inconsequential. Purchase/leasing costs, gas, insurance, maintenance, licence fees and deprecation are among the many costs associated with the owning and operating a vehicle.
From time to time, various levels of government consider that drivers should bear the financial burden of another tax just because they own and operate a vehicle. Sometimes, these new taxes find their way into law. In 2007, Toronto council voted in favour of implementing a new registration tax (the dreaded car tax —$60 for vehicles / $30 for motorcycles), and drivers were forced to pay up until the tax was eliminated in 2011.
Another plan that is being considered could result in a whole new level of taxation for Ontario motorists. The ministry of municipal affairs and housing is reviewing the Municipal Act, and is seriously considering giving new taxing powers to all municipalities — including a municipal vehicle registration tax.
The vehicle registration tax has the potential to increase taxes on Ontario vehicle owners by a whopping $660 million per year (based on 11 million registered vehicles multiplied by the example of Toronto’s recent vehicle tax of $60 per year).
For the past several months, the Trillium Automobile Dealers Association (TADA) has been advocating that the province of Ontario not allow municipalities the ability to charge their own taxes on vehicles.
A poll released in May by Nanos Research shows a strong majority of Ontarians — 71 per cent — do not support municipalities having the ability to tax vehicles and believe the provincial government should slam the brakes on giving municipalities the authority to tax the family car. Ontarians have sent a strong message to provincial and municipal politicians that a municipal vehicle registration tax is not welcome.
The Nanos poll also found that an overwhelming majority of Ontari- ans — 83 per cent — say the family car is a necessity to run their household.
The Ontario government should take steps to lessen the cost of owning a vehicle in order to promote Ontario’s auto sector and make life easier for Ontario families. A new vehicle registration tax, courtesy of your local municipality, achieves neither of these goals.
Ontarians feel the timing is poor for a new government tax on cars. Almost half (48 per cent) of residents in Ontario feel that the timeli- ness of the new government tax on cars is very poor. Additionally, over a quarter (28 per cent) of residents believe the timeliness is poor.
The Ontario government has been less than candid about its intentions of a potential new municipal vehicle tax. During Question Period on Dec. 10, 2015, Municipal Affairs and Housing Minister Ted McMeekin did not clarify whether the province of Ontario would grant municipalities the authority to charge a vehicle registration tax. But at the same time, he did rule out extending a municipal land transfer tax to all municipalities. Why rule out one tax and not the other?
The TADA is calling on the Ontario government to provide a clear answer on a potential vehicle registration tax. If you want to register your opposition to this proposed new vehicle tax, I urge you to contact your local MPP. This column represents the views of TADA. Email president@tada.ca or go to tada.ca. Bob Redinger is president of the Trillium Automobile Dealers Association and is a new-car dealer in the GTA.