Showing posts with label fuel tax. Show all posts
Showing posts with label fuel tax. Show all posts

Wednesday, April 28, 2010

Tolls, taxes, fees for transit? John Tory aims to lessen the stigma

http://www.theglobeandmail.com/news/national/toronto/tolls-taxes-fees-for-transit-john-tory-aims-to-lessen-the-stigma/article1549090/

John Tory, like the policy battle he’s about to join, has evolved since 2003.

In the mayoral race that year, he “rose up in great indignation” at David Miller’s suggestion that Toronto’s roads be tolled.

Now, seven years later, Mr. Tory intends to use his platform as chairman of the Toronto City Summit Alliance to ratchet down the public indignation that often greets five ideas for funding public transit: road tolls; a Greater Toronto sales tax; a parking tax; a gas-tax hike and a property-tax increase.

“The notion that it’s none of the above is not on,” Mr. Tory said. “This is a test of leadership because otherwise to say you’re going to build all this transit without saying how you’re going to pay for it is, to me, a meaningless promise.”

The Toronto City Summit Alliance, which Mr. Tory took over after the death of founder David Pecaut, has quietly formed a working group of about 25 top minds to pore over five options for funding transit, along with other issues of transportation and infrastructure in Greater Toronto. Members have been drawn from the Toronto Board of Trade, regional transportation agency Metrolinx, and the prominent planning firms Urban Strategies, Inc., and IBI Group, among other organizations.

The official goal will be to recommend ways to raise the approximately $2-billion a year Metrolinx has said it needs to crisscross the GTA and Hamilton with new rapid-transit projects over the next 25 years.

More important, the TCSA, the city-building organization that helped conjure Luminato from thin air, intends to make it possible for candidates to utter the words tolls and taxes without being crucified.

“What’s going on right now is a bit of denial in the populace at large,” said Joe Berridge, a partner at Urban Strategies, Inc. and member of the TCSA subcommittee. “They feel we should just build this transit and get on with it. But we’re looking at a very big build and governments that are not flush with the cash. In some way or another we’re going to have to tax ourselves in the region – whether that tax is in the form of a gas tax, sales tax or various kinds of road pricing.”

Beating congestion has so far dominated the race to replace David Miller. His light-rail plan, Transit City, has been temporarily derailed by the province, which postponed $4-billion in transit funding in its budget in March.

Although the delay made the transit-funding question more urgent, all but two major candidates have rejected road tolls as a means of raising new revenue. Women’s Post publisher Sarah Thomson has pitched a rush-hour toll on the Gardiner Expressway and Don Valley Parkway to pay for more subways, while George Smitherman has said he’s open to discussing tolls.

“Any mayoral candidate who says you can have your cake and eat it too on transit is just not telling the truth,” Mr. Berridge said.

The TCSA group, which has met twice, intends to hold public roundtables this summer, Mr. Tory said. He said it was too early to say whether members would have firm recommendations in time for the Oct. 25 election. The TCSA’s next formal summit is not until February, 2011 – less than a year before provincial politicians face the electorate. Most of the funding options would need Queen’s Park’s approval.

The Toronto Board of Trade, meanwhile, intends to unveil separately its recommendations for funding transit in plenty of time for municipal voting day. “We may take it down to a short list [of funding options],” said Carol Wilding, president of the board. “We’ll ask the candidates to do the same thing, recognizing they may not want to go there. But we’ll be pushing.”

Wednesday, January 20, 2010

electric cars shock to gas tax


Susan Tusa, Detroit Free Press
Tax cash cow turning a corner?
Electric cars will zap fuel revenue stream


The Canadian Press

MONTREAL (Jan 20, 2010)

The eventual popularity of electric cars will force governments to consider alternative revenues as they prepare to wean themselves off fuel taxes, industry observers say.

Canada's three levels of government share about $15 billion in taxes from fuel annually. But some of that revenue could be at risk if consumers turn en masse to plug-in electric or hybrid vehicles.

"What is being talked about is taxes on electricity, taxes on other modes of transportation like highway tolls," said Al Cormier of Electric Mobility Canada.

But the founder of the organization that promotes electric cars says taxation shouldn't be a major issue for at least five years. It will depend on fuel prices and electric car purchases.

The industry has forecast that there will be 500,000 plug-in electric cars in Canada by 2018. That's a small fraction of the 20 million vehicles on the country's roads today.

HEC business school professor Pierre-Olivier Pineau said governments have to rethink their tax intake as society looks to rid itself of its oil consumption habit. He said the most likely option is to implement carbon taxes or increase ones already in place in B.C. and Quebec.

Part of the government's tax solution might also involve charging higher rates to recharge a car than for residential uses.

Existing networks only charge one price for each household.

But "smart grids" that could be available in a decade would permit variances.

"It's becoming a buzzword and people think it will change a lot of things," he said.

Growing interest in electric cars has Canada's provincial and municipal electric utilities conducting pilot projects to get ready.

Hydro-Quebec recently announced a partnership with Mitsubishi to test the performance of 50 plug-in i-MiEV electric cars in the town of Boucherville over the next three years.

The $4.5-million project provides the public utility with another window on the electric car market. It is also testing a Ford Escape hybrid and a hybrid pickup truck, while batteries developed by its TM4 subsidiary are being tested overseas in vehicles being developed by Indian carmaker Tata.

Spokesperson Stacey Masson said the Mitsubishi project is part of the energy giant's overall strategy and will help it evaluate the impact of electric vehicles on its vast network.

B.C. Hydro launched its own trial of the cars in November and is also awaiting delivery of the Nissan Leaf in 2011.

Toronto and Calgary are also looking to test electric cars.

The vehicles are seen as part of the solution to global warming as they emit no greenhouse gases.




http://www.thespec.com/