Dealers in Canada may be interested to note that Ontario will amend the City of Toronto Act to remove the city’s ability to charge a personal vehicle tax — a win for the Motor Vehicle Retailers of Ontario (MVRO), which has long sought to eliminate this taxing power.
Ontario granted Toronto the ability to charge a personal vehicle tax in 2006. Since 2015, the MVRO said several city councillors have brought forward at least eight separate motions to reinstate the vehicle tax.
Brent Ravelle, President of the MVRO and a new car dealer in Listowel, Ontario, said Toronto city councillors will no longer target the family car looking to generate tens of millions of dollars every year. “With transportation costs accounting for nearly 15 per cent of a family’s budget — about 1 in every 6 dollars — scrapping this tax for good is the right move,” he said in a statement.
Frank Notte, MVRO’s Director of Government Relations, also commented on the amendment. He said the City of Toronto doesn’t need a new tax on the family car to generate revenue. “Ontario’s recent decision to assume responsibility for the Gardiner Expressway and Don Valley Parkway frees up $7 billion in ongoing capital costs for the City.”
He added that this comes up to nearly 150 times the $48 million the vehicle tax generated on a yearly basis, back when it was in effect from 2008 to 2010. The tax had only been in effect for three years since becoming law, but the threat was always present. The MVRO said the 2025 Ontario Budget will eliminate that threat completely.
