York Region taxpayers have spoken and it’s a message the Trillium Automotive Dealers Association hopes municipal political hopefuls get loud and clear: 90 per cent of those surveyed oppose any new additional taxes to keep their vehicles on the road.
The latest Nanos public opinion scan, released Oct. 1 and commissioned by the Richmond Hill-based auto dealers group, also shows an overwhelming majority of those polled say they are unlikely (81 per cent) and somewhat unlikely (five per cent) to support a politician who is in favour of such a tax.
At issue is the Regional Municipality of York’s push for new taxing muscle that would allow it to place a $100 to $120 charge on licence plate renewal stickers, on top of the $120 charge drivers now pay to the province, as the City of Toronto has the power to do.
Earlier this year, York Region politicians lobbied the Ontario government for new “revenue-raising powers” to implement such things as the vehicle tax, and a municipal land transfer tax that would generate about $15,000 for regional coffers on every sale of an average-priced home. That idea, too, was shot down by the Toronto Real Estate Board.
“York Region home buyers are already charged a provincial land transfer tax, so by adding a municipal tax, the Region will double the tax burden on local families,” board president Tim Syrianos said in May.
This extra taxing authority would help alleviate a projected $220-million shortfall the regional government says it needs to shore up roads, infrastructure and maintenance costs. Needs that cannot be addressed by the current limit of a three-per-cent property tax increase, it says.
Regional council veteran and mayoral candidate John Taylor believes the region should have the same taxation tools at its disposal as Toronto.
"It's important to listen to public opinion, but before we'd do anything, we'd seek our own public consultation and our own local input," Taylor said. "Just because we have those powers doesn't mean we'd use those powers. I don't see us moving on any of this in the next four years, but it's a tool we need so our hands aren't tied."
Newmarket Taxpayers Advocacy Group president Teena Bogner said a new vehicle tax will add more stress to an already overburdened taxpayer.
"Municipal taxes predictably increase annually, and the cost of living has likewise increased over the past few years," she said. "We cannot continue to burden the taxpayer to finance all projects at a municipal and regional level. Toronto Mayor John Tory has stated that 'we owe it to the public to spend their money wisely, before we ask them to contribute more’. What a novel idea. We hope the Region of York and local municipalities take note. Taxpayers need to demand better."
Mayoral candidate Joe Wamback echoed those thoughts.
"I am opposed to any additional taxes in any form," Wamback said. "We need to get our financial house in order. Our federal, provincial and municipal governments have a serious spending problem. Why do we keep electing those politicians who promise everything and then drive us into debt to keep their promises?"
What could the regional government do instead of adding new taxes?
Of those polled, 45 per cent said reduce government waste. Another 22 per cent said freeze municipal employees’ wages. Only 6 per cent were in favour of the new vehicle tax.
This sentiment tracks with a 2016 Nanos poll, also commissioned by the auto dealers association, that found that nearly three-quarters of Ontarians reject the idea of local governments having the power to tax vehicles, with three in four unlikely to support a provincial politician in favour of granting new taxing authority to municipalities.
Newmarket regional councillor and deputy mayor candidate Chris Emanuel said the answer to the financial pressures faced by municipalities can’t always be to add a new tax.
“I believe that proposed taxes like vehicle taxes and land transfer taxes are wrong-headed,” Emanuel said. “Residents are taxed enough.”
Rather, local governments should get a “bigger piece of the gas-tax pie and spend that money on roads and infrastructure”, he said.
“We need to do more to efficiently use our tax dollar already,” Emanuel said. “And that’s for all levels of government.”
Similarly, regional councillor and deputy mayoral candidate Tom Vegh is also opposed to the implementation of a car tax.
"For too long, York Region taxpayers have been financing growth on behalf of developers, and a car tax is just another subsidy for developers," Vegh said. "Developers must pay for the growth they benefit from."
Under Ontario regulations, York Region’s current share of the gas-tax transfer program is $16.4 million, and it is expected to rise to $29.5 million by 2021-2022. The Region anticipates raising about $1.7 billion through property taxes, which is not even half of the revenue needed to keep up with growth and maintain current infrastructure, according to a regional update report.
Additional regional revenue comes from user fees and charges, development charges, and fines and penalties.
Nanos research found almost half of York Region residents surveyed lived in a two-vehicle household, and almost all said their vehicles were essential or somewhat essential to their daily lives. Only four per cent say having a vehicle is not essential.
