Driver and Vehicle Fees
Regulation - LGIC
Bill or Act:
Highway Traffic Act; Motorized Snow Vehicle Act; Off-Road Vehicle Act
Summary of Proposal:
The Ministry of Transportation is seeking to introduce annual two per cent across-the-board fee increase beginning July 1, 2019 and for the next five years for various driver, vehicle, and carrier products and services. These moderate fee increases will allow the government to continue delivering services and move towards full cost recovery without increasing taxes for all Ontarians.
By doing a two per cent regular increase, the Ministry of Transportation is taking a measured approach to achieving fiscal balance, while providing Ontario residents the ability to predict annual increases, directly tied to inflationary pressures.
Ontario residents and the transportation sector rely on, and benefit from the services provided by the Ministry of Transportation. This includes for example, the issuance of licences, authorizations and certificates. Historically, some services have been provided to individuals and industry at rates that do not really reflect the cost to the ministry to provide these products and services.
Over the last few years, the ministry has introduced new fees through the multi-year planning process while increasing existing fees to meet the intent of the Non-Tax Revenue directive that non-tax revenues should be maximized, and user-fee rates should be set at levels that would recover the costs of providing services where it is reasonable and practical to do so.
In addition, the ministry is proposing to cancel previously planned passenger/light commercial vehicle fee increases slated to take effect January 1, 2020 and January 1, 2021, as well as move the scheduled driver examination services' Consumer Price Index (CPI) fee increases due on September 1, 2019 for implementation on July 1, 2019 instead.
Analysis of Regulatory Impact:
It is anticipated there will be a neutral to negative reaction from drivers, vehicle owners and commercial carriers, with the impact on drivers and vehicle owners estimated to be low as proposed increases are minimal and will be spread over a five-year planning horizon. The impact on commercial carriers, on the other hand, is expected to be medium, as carriers have previously been impacted by fee increases over the last few years. The estimated number of active commercial companies is approximately 58,000.
June 13, 2019
Comments Due Date:
June 17, 2019
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