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Published on March 27th, 2017 | by Rodrigo Cokting

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Additional Funds for Road Repairs on the Horizon

Back in January, the provincial government announced that beginning in 2019, municipalities will be eligible to receive an increased share of provincial gas tax funds.  This increase would help many cities across Ontario with the necessary funding for infrastructure projects.

So, What Does This Mean?

To understand what this move means and how it will affect municipalities in Ontario, it’s important to take a closer look at funding from gas taxes.

For every litre of gas you pump, the federal and provincial governments collect a couple of cents each through their gas taxes.  A portion of the provincial gas tax is dedicated back to municipal governments with the purpose of tackling the problem of building and repairing infrastructure like roads and bridges, and expanding transit services.

Starting in 2019, the share of the Gas Tax that municipalities receive will go up from two cents, hitting four cents by 2021. While this change won’t increase the amount of tax paid by consumers at the pump, it could lead to a big change on the state of the roads and infrastructure used by Ontarians.

“Moving from two cents for every litre sold to four cents by 2021/22 is a critical step towards sustainable infrastructure funding in Ontario’s municipalities,” said Elliott Silverstein, manager of government relations, CAA SCO. “Municipalities across Ontario will be able to access these funds and help address infrastructure deficiencies in their local communities.”

And How Can This Help?

Ontario, with its many commuters and heavy use of their roads, is a province in constant need of infrastructure construction and repair. As an organization, CAA has called upon the Province for additional and dedicated funding to ensure sufficient and safe infrastructure, through campaigns such as CAA Worst Roads.

“Municipalities across Ontario will be able to access these funds and help address infrastructure deficiencies in their local communities.”

In fact, a 2013 Conference Board of Canada report commissioned by CAA SCO entitled, “Where Rubber Meets the Road”, revealed that motorists in Ontario cover between 70 and 80 per cent of the costs associated with the maintenance of Ontario’s road network through fees and gas taxes. That figure rises to over 100 per cent in the GTHA.

Having an increase in permanent funding, helps cities have a better idea of what they can plan for.

“With additional investment by the province towards infrastructure, municipalities can focus on a number of tools and plans to create the mobility and technology options to tackle gridlock,” concludes Silverstein.

Why CAA Cares.

As a leader and advocate for road safety and mobility, CAA South Central Ontario is a not-for-profit auto club which represents the interests of 2 million members. Find out more about how CAA South Central Ontario gives back to the community through advocacy, by visiting this page.

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