(L-R) Ontario Minister of Finance Peter Bethlenfalvy and MVRO Director of Government Relations Frank Notte celebrate the elimination of Toronto’s Vehicle Registration Tax during a post-2025 Ontario Budget breakfast on June 5, 2025. (Photo courtesy of MVRO)
The Motor Vehicle Retailers of Ontario (MVRO) closed out 2025 with a significant policy win, as the Ontario government permanently removed the City of Toronto’s authority to impose a personal vehicle tax.
The change was enacted through the 2025 Ontario Budget, which amended the City of Toronto Act and stripped the city of its power to levy a municipal tax on vehicle ownership. The authority had existed since 2006 but was never exercised. Its removal ends nearly two decades of advocacy by the MVRO.
“The Motor Vehicle Retailers of Ontario extend our heartfelt thanks to Premier Doug Ford and Finance Minister Peter Bethlenfalvy for ending this looming car tax once and for all,” said Frank Notte, director of government relations for MVRO. “New car retailers and Toronto drivers are no longer threatened by a needless tax that unfairly penalized people for simply owning a vehicle to run their household.”
According to a City of Toronto staff report, vehicle owners would have faced costs of up to $94 million annually had a $100-per-vehicle tax been introduced. The MVRO framed the move as part of a broader 2025 policy direction focused on reducing vehicle ownership costs and regulatory burden.
Other measures highlighted by the association include permanent cuts to gasoline and diesel taxes, the removal of tolls on Highway 407 East, and continued upgrades to Ontario’s Digital Dealer Registration program. Recent changes allow dealers to electronically register certain heavy commercial vehicles and pay plate denial fines on behalf of customers, reducing the need for ServiceOntario visits.
“Ontario’s new car and truck retailers offer our heartfelt appreciation to Premier Ford and his government for their continued support in cutting red tape through the Digital Dealer Registration program and lowering the cost of the family car,” Notte said.
