Regional council wants stable gas tax fund
Councillors fear unpredictability of gas tax fund as more people purchase electric vehicles
By Chris Jones/The Oshawa Express
Durham Region is looking into following Whitby’s lead and pushing for the federal and provincial governments to ensure gas tax fund allocations will continue at present levels.
Whitby council recently expressed their worry over the sustainability of the gas tax fund due to electric vehicles becoming more prevalent, and fewer people relying on fossil fuel powered vehicles.
Kevin Narraway, Whitby’s deputy clerk, wrote an e-mail to Minister of Municipal Affairs and Housing Steve Clark seeking assurance the gas tax funds would continue.
“The council of the Town of Whitby requests the federal government and provincial government ensure that funding for municipalities through their gas tax funds remains sustainable to facilitate effective service delivery and infrastructure maintenance by having the funds supplemented through means other than the taxation of gas and diesel,” writes Narraway.
The town council also asked for the feds and province to consider renaming the funds to “better reflect a more sustainable source of funding,” as well as providing a set dollar amount or an increasing percentage of revenue to municipalities.
The resolution recently made its way in front of the region’s finance and administration committee, where numerous members voiced their support.
Ajax Mayor Shaun Collier was quick to praise the resolution.
“I just want to mention Ajax council did endorse this at our Dec. 20 [2019] meeting as well,” he said.
Clarington Mayor Adrian Foster noted the resolution was an example of forward thinking.
“At a couple of levels, I think it’s a great bit of work from Whitby,” said Foster. “We have chatted a couple of times about the challenges of the gas tax, and… [electric vehicles are outselling fuel-powered vehicles], so [if] we predict 10 years down the road from now that we’re seeing gas taxes diminish… taking a look at that as well as the environmental side is not a bad thing to do.”
The resolution was received for information by regional staff.