10 cents per litre fuel tax among revenue tools recommended to fund public transit

TORONTO – A regional sales tax, parking space tax, fuel tax and toll on HOV lanes are the revenue tools which the city should look at to fund expanded public transit while relieving congestion, according to the Toronto Region Board of Trade.

The revenue streams were announced at a press conference Monday morning as a way of generating more than $2 billion annually to fund The Big Move – Metrolinx’s plan for increasing public transit in the region.

A breakdown of the Board of Trade’s recommendations:

• A one per cent regional sales tax that could generate $1.0-1.6 billion annually.
• A $1 per space per day parking space levy that could generate $1.2-1.6 billion annually.
• A 10-cent per litre regional fuel tax that could generate $640-840 million annually.
• A 30-cent per kilometre toll on HOV lanes for single drivers that could generate $25-45 million annually.

The Board of Trade warns that the region is currently losing approximately $6 billion a year in lost productivity because of congestion – a number that is estimated to increase to $15 billion by 2031.

Metrolinx is scheduled to present its own list of revenue tools to the province by June 1 and the Board of Trade’s suggestions may or may not make the cut.

However, the suggested revenue tools would be just one part of the instruments used to pay for public transit.

Carol Wilding, President and CEO of the Toronto Board of Trade says federal funding and the use of public-private partnerships are also “table stakes” necessary to generate the $40 billion needed.

Wilding also hopes to see funding from the federal government continue in the budget expected to be released Friday.

While Wilding admits it will be difficult to convince some people of raising taxes, the recommendations are a product of “extensive consultation” across the region.

“We’ve talked to Torontonians, we’ve talked to individuals around the region. We’ve talked to the business leaders and this is what they’ve told us,” Wilding said. “They realize the cost of not doing this. So they’re prepared to play their part like everybody else.”