The Trillium Automobile Dealers Association (TADA) is calling on the Ontario government to provide a clear answer on a potential vehicle registration tax.
In a letter to Municipal Affairs and Housing Minister Ted McMeekin, Frank Notte, Director of Government Relations for the TADA, said during Question Period on Dec. 10, 2015, McMeekin did not clarify whether the province of Ontario would grant municipalities the authority to charge a vehicle registration tax.
But on Dec. 10, McMeekin did rule out the power for municipalities to charge a Municipal Land Transfer Tax (MLTT), making Notte concerned the vehicle registration tax could be suited to roll out to all municipalities.
That power had been granted to the City of Toronto in 2006, and was eliminated in 2011.
Notte said if all of Ontario’s 444 municipalities implemented the tax and modelled it after the City of Toronto’s $60 per year cost for the province’s 11 million registered vehicles, it could represent a $660,000 tax increase.
He added the provincial government already collects $10-billion a year in various sales, services, fuel and registration fees. A new tax would further increase the cost of families’ transportation budget, said Notte.
“Whether it’s the five major automobile manufacturers, the 700 tool and die makers or the 1,000 new car dealers and their 49,000 employees — a Vehicle Registration Tax would send the wrong signal to the auto sector,” said Notte in the letter.
Notte told Canadian auto dealer the Ministry confirmed it has received the letter but has not responded.
“We’re on pins and needles but we’re still being vocal in letting our members know it’s a bad idea.”
