Rapid Transit

[thistleclub]

Transit funding: Board of trade suggests raising $2B a year through sales, gas and parking taxes
(Toronto Star, Tess Kalinowski, Mar 18 2013)

Toronto region commuters already suffer some of the longest commutes in North America. Now the Toronto Region Board of Trade is recommending aggressive taxes that will add pain to their pockets.

In an unusual step for a business group, the board is recommending a slate of four new revenue tools — a regional sales tax, a gas tax, a commercial parking levy and high-occupancy toll lanes — to raise $2 billion annually that would be dedicated exclusively to better transit.

The taxes and fees could be a 905-area commuter’s nightmare, warned regional politicians, who said they won’t support them if the revenue is devoted primarily to Toronto transit improvements.

Even in Toronto, the board’s tax recommendations drew immediate and predictable criticism from Toronto Mayor Rob Ford’s anti-tax allies on city council.

But board of trade CEO Carol Wilding said she expected divergent opinions. Consensus on new taxes is difficult to achieve. But the fed-up public seems prepared to pay and businesses are ready to step up.

“It will be hard for all of us, but all of us have to contribute. All of us will benefit when the new transportation is in place,” she said.

The alternative — doing nothing — will results in dwindling competitiveness for the region as traffic congestion sucks $15 billion annually in lost productivity out of the economy by 2031, she said Monday.

The board isn’t recommending what combination of the tax tools should be used, or even the tax rates that should be applied. But it estimates that a regional sales tax of 1 per cent or a $1-per-day commercial parking levy could each raise at least half the $2 billion annually that Metrolinx says it needs to build the Big Move regional transportation plan.

A gas tax of 10 cents/litre would raise $640 million to $840 million. Asking lone drivers to pay tolls for using high-occupancy vehicle lanes on area highways at 30 cents/km would provide $25 million to $45 million. The latter charges are less lucrative but have the benefit of reaching directly into the wallets of road users.

Increased income tax, property tax and employer payroll taxes, as well as general road tolls, were among a dozen ideas rejected by the board.

Funding from senior governments, public-private partnerships and land-value capture in new transit corridors will still be necessary, “but they’re not going to raise the $40 billion that we need,” said Wilding.

[Dr Awesomesauce]

$40,000,000,000...I didn't know numbers went that high.

[thistleclub]

And then some, Royson James contends.

[Dr Awesomesauce]

Ouch.

You have to wonder how cities like Melbourne manage with their massive public transport network.

Perhaps we'll strike oil in Southern Ontario...could happen.

[thistleclub]

Toronto’s business community calls for taxes and fees to expand transit
(Globe and Mail, Oliver Moore, Mar 18 2013)

Toronto’s business community has thrown its support behind broad-based new taxes and fees to expand transit, a shot in the arm for plans to ease regional congestion over the next generation.

But the Toronto Region Board of Trade proposals immediately sparked criticism from those who believe that the private sector should play a bigger role, instead of citizens being asked to pay more. And the mayor of Hamilton, one of the biggest cities in the region, is unsure whether his community will want to participate in the transit plans....

Another dissenting voice was Hamilton mayor Bob Bratina, who has concerns in spite of what he called “sound” proposals from the board. He noted that his community wants to use transit to spur development, which could lead others to believe that their needs are less important than congestion-reducing projects in Toronto. And he does not want there to be the sense that Hamiltonians are paying for Toronto’s transit expansion.

“I think we still need to have the discussion here in Hamilton about the extent of our participation, depending on how our needs are going to be met under the Metrolinx plan,” he said by phone. “Would we, in taking part in this funding strategy, see a return right away, or would there be a prioritized list?”


Oakville’s Rob Burton has also expressed angst about potential asymmetry.

[Dr Awesomesauce]

In spite of his early-onset Alzheimers, I'm now absolutely convinced that he's intentionally trying to derail (pardon the pun) LRT in Hamilton.

Essentially what he's just said is we don't need LRT for moving people around and that it's just a vehicle (again, pardon the pun) for development. First and foremost, it's a people mover; secondarily, it'll attract investment (of all kinds), not to mention all the other benefits of LRT.

As was previously mentioned, we need Glen Murray to speak on our behalf because our mayor is completely out of his aged mind.

We've nobody to blame but ourselves. The blue hairs in this city voted for him because they like his voice/ CHML, etc. This is what you get. Even Di Ianni would be preferable (gasp!).

[SteelTown]

Ontario premier pitches "revenue tools" for road repairs, transit

The Canadian Press
Posted: Mar 25, 2013 1:53 PM ET
http://www.cbc.ca/hamilton/news/story/2013/03/25/hamilton-wynne-revenue-tools.html

Ontario needs a dedicated fund for roads and bridges, Premier Kathleen Wynne said Monday as she hinted at new tolls or taxes to pay for badly-needed repairs and upgrading.

While people in the Toronto-Hamilton area may face road tolls or some other kind of levy to help fund public transit and ease road congestion, municipalities in other parts of the province can't afford to repair roads and bridges, said Wynne.

"The discussion around new revenue tools has been specific to transit at this point, but we need to find a way to create dedicated revenue streams for roads and bridges, i.e. a fund that would allow us to continue to work with municipalities to make sure those infrastructure needs are met," she said.

"The fact is whether we find those dedicated funds within the revenue that exists right now or whether there's a new revenue stream as I'm talking about vis-a-vis transit, I'm very aware that infrastructure is a challenge for us."

Wynne has talked about the need for what she calls new revenue tools — road tolls or some kind of tax — for transit improvements in southern Ontario, but this was her first hint that taxpayers in other regions could also face new charges.

"There are tolls, there are taxes, there are fees, there are a whole lot of names, words for these mechanisms," she said. "Tools is the word that's being used, and I'm not using it as a euphemism. I'm using it as a catchphrase for all the different ways that we can raise new revenue."

'The reality is a lot of that infrastructure in municipalities is aging, so those roads and bridges have to be dealt with.'—Premier Kathleen Wynne

Wynne said there would have to be some new way to help municipalities pay to repair infrastructure that in many cases is up to a half-century old.

"The reality is a lot of that infrastructure in municipalities is aging, so those roads and bridges have to be dealt with," she said. "We need to be cognizant of the infrastructure revenue across the province. In the Greater Toronto-Hamilton Area that translates largely into transit funding, but beyond the GTHA it's about that broader transportation network."

The New Democrats, who have opposed new taxes or road tolls to pay for public transit improvements, said the government should close corporate tax loopholes before imposing tolls or a new tax.

"Everyday families in Ontario cannot afford more Liberal taxes that hurt their family budgets," said NDP Leader Andrea Horwath.

Wynne warned "another generation of transit building" would be lost if the government followed the NDP's advice and did not look for new revenue streams.

[thistleclub]

Transit – Taking a political TOLL
(mayorbratina.com, Mayor Bob Bratina, March 26, 2013)

The Province is embarking on the next phase of the so-called “Big Move,” which is intended to provide solutions to gridlocked roads and highways in the Greater Toronto Hamilton Area (GTHA). Hamilton has already benefited immensely because of the Province’s commitment to build a new GO Train station at James Street North as well as an all-day two way service to Toronto. Also, in the plans is a second station in the Centennial Parkway area of Stoney Creek. Premier McGuinty made this commitment to me personally, and Premier Wynne has confirmed that service should begin in time for the 2015 Pan Am games. This has fallen under Phase 1 funding of “Quick Win” projects totaling $744 million dollars. The next phase includes Hamilton’s “Rapid Ready” transit plan, including Light Rail Transit, and will require new funding of an estimated $34 Billion dollars.

This is the subject of intense discussion among the mayors and councils of the GTHA because of the need for new revenue not currently available within the Provincial treasury; now struggling with a multi-billion dollar deficit. We will soon learn what strategies the government will propose to generate the dollars needed for transit expansion and enhancement, and just as important, the public’s willingness to participate through road tolls, gas tax, parking fees, or whatever is brought forward by June 1st as legislated. My thanks to CHCH TV news for accurately reporting my thoughts in the following telecast story:

http://www.chch.com/home/item/12173-tolls-tax-hike-may-fund-roads-transit

One thing to remember is that the best laid plans of mice and men…

http://www.youtube.com/watch?feature=player_detailpage&v=4F4yT0KAMyo#t=44s

[thistleclub]

Via Metrolinx:

Find a Big Move Kiosk near you!

Metrolinx’s Interactive #BigMove Activity is now available on kiosks making their way through each part of the Greater Toronto and Hamilton Area.


Hamilton Public Library (55 York Blvd, Hamilton) Mar 18-Apr 7

Tansley Woods Community Centre (1996 Itabashi Way, Burlington) Mar 18-Apr 7

Lister Information Centre (28 James St. N., Hamilton) Apr 8-28

Burlington City Hall (426 Brant St., Burlington) Apr 8-May 5

Hamilton Farmer’s Market (35 York Blvd, Hamilton) Apr 29-May 12

[durandy]

Ontario Liberals to back NDP plan to slash auto insurance

CBC News Posted: Mar 27, 2013 2:11 PM ET
http://www.cbc.ca/news/canada/toronto/story/2013/03/27/toronto-ontario-auto-insurance.html

"The Ontario Liberal government will move to support an NDP motion to reduce auto insurance rates in the province by 15 per cent.

The reduction in premiums was one of the NDP's budget demands and the party says they will not support the minority Liberals' budget unless the motion is passed.

"Ontarians' auto insurance premiums are the highest in Canada and they need to come down," NDP leader Andrea Horwath said.

"New Democrats have been very clear that we want to see a 15 per cent reduction."

The motion, calling for the province's insurance regulator to gradually cut the premiums, was presented Wednesday.

Premier Kathleen Wynne said she would support the motion.

"Because the underlying principle is we need lower rates for drivers in Ontario and that's what we're working on," Wynne said.

Although Wynne said the Liberal government would support the measures, such motions are non-binding.

Progressive Conservative insurance critic Jeff Yurek said his party will vote against it.

"We can't just support a motion that doesn't have a plan behind it, this is just bumper sticker politics," Yurek said."

[Innsertnamehere]

hopefully they take a concession with the Liberals and let their transit taxes go through.. would be nice.

[Dr Awesomesauce]

Time for the NDP to stop pandering and actually do something that matters. As a party, they've become completely irrelevant to me.

[thistleclub]

The Big Move: A sneak peek at Metrolinx’s short list of ‘revenue tools’ for expanded transit
(Toronto Star, Tess Kalinowski, Apr 2 2013)

The rubber hits the road on transit funding Tuesday, as Metrolinx releases a short-list of tools it favours to pay for a massive expansion of the Toronto region’s long-neglected transportation system — possibly including such inventive ideas as an employer payroll tax or even GPS-tracked mileage fees.

The list provides the clearest picture yet of how residents and corporations will dig into their pockets to fund a war on the traffic congestion that’s sapping the region’s prosperity.

The list will include traditional ideas such as property taxes, fare increases and parking levies, including parking at GO Transit stations. It also shows Metrolinx is still considering some innovative schemes that might be piloted locally. One — an odometer tracking or GPS-based technology system — would see Toronto area motorists charged for each kilometre they travel in the region.

Many of the ideas on the list, including highway tolls, sales and gas taxes, have been discussed at length in public roundtables Metrolinx has hosted across the region.

Others, such as a Parisian-style employer payroll tax, and land-value capture along new transit routes, are less widely understood.

A downtown congestion charge, corporate income tax, carbon taxes, a parking sales tax and vehicle registration fees are among more than a dozen revenue tools Metrolinx has already crossed off its list as being too expensive, too punitive or too risky.

The short list is expected to reflect the findings of the regional public discussions and also those of a broad study Metrolinx commissioned of revenue tools being used to fund transit and infrastructure in other jurisdictions.

The report by AECOM KPMG, titled Big Move Implementation Economics: Revenue Tool Profiles, looked at 24 potential money-makers and ranked them by criteria such as their sustained money-making potential, cost of implementation, and whether they might result in positive changes to commuting habits.

Not all the short-listed ideas will make it into the final investment strategy Metrolinx submits to the province in June. That’s when the agency gives Queen’s Park its final recommendations for raising $2 billion annually for the next 25 years — the amount estimated in Metrolinx’s 25-year, $50-billion Big Move regional transportation plan.


Revenue tools Metrolinx short-listed

Some mix of the following revenue tools could be dedicated to a $2 billion annual transit expansion fund.

Development charges: Municipalities already charge fees to developers. But they can be increased on a per-project basis; for instance, a recent bump in fees in Toronto is helping to pay for the Spadina subway extension. A boost of $2,000 to $3,000 per new residential unit would generate $25 million to $50 million per year. If a development charge was applied to several projects in the region, the tool has the potential to raise $100 million. But the increase can’t be so high it drives development elsewhere.

Employer payroll tax: Used in Paris, France, and in Portland, Ore., this tax can be based on the employer’s proximity to transit lines. Based on 2009 employment figures, a 0.5 per cent employer payroll tax could raise between $810 million and $920 million by 2021.

Gas tax: A 0.5-cent/litre fuel tax could raise $300 million to $400 million a year by 2021. It could encourage motorists to cut fuel consumption, buy fuel-efficient cars and reduce their greenhouse-gas emissions. But it would also boost the cost of moving goods, affecting business.

High-occupancy toll lanes: Vehicles carrying more than one person would still be allowed to use HOV lanes for free. But single-occupant cars could also use them for a fee. Converting existing HOV lanes and those slated to be built this decade could generate between $160 million and $250 million. Implementing HOT lanes would be costly, but less so than tolling the entire highway.

Highway tolls: Tolls would be applied to 400-series highways and some city-owned roads such as the Gardiner and DVP. Completely phased in, they could raise up to $1.5 billion a year at a cost of 10 cents/km. Installing and administering tolling technology on highways would be costly, but could help reduce congestion.

Land value capture: Developers could end up paying more for land in the vicinity of specific transit improvements. Developers or land owners could be required to provide facilities (such as transit stations), cash or infrastructure; they could be taxed on revenue generated by the property; or the property tax could rise to reflect the increased value of the site.

Parking space levy (including transit stations): A charge per day on all non-residential, off-street parking could be based on the total area rather than number of parking spots, much like a property tax. Based on an estimate of 4.1 million parking spaces in the region and a charge of $1 per space per day, it could generate $1.4 billion to $1.6 billion. No new infrastructure would be required, but municipalities would have to do an inventory of available space. GO Transit, the region’s largest parking operator, drew stiff objections from customers when it floated the idea earlier this month. Ontario Transportation Minister Glen Murray has already suggested charging for GO parking could drive some transit commuters back to their cars.

Property tax: Based on the assumption of $7.7 billion in property taxes raised in 2010, a 5.2 per cent increase could raise up to $650 million in 2021.

Sales tax: A 1 per cent sales tax applied to all consumer goods in the region could generate up to $1.6 billion. Because it would be applied to the 8 per cent provincial portion of the HST, it could be complicated to limit the tax to the region and might have to be implemented province-wide, in which case the revenue would also need to be more widely shared.

Transit fare increase: Transit officials fear raising fares to help fund system improvements could drive down ridership. A 10-cent increase on 618 million annual transit trips in the Toronto region could generate up to $45 million, given population growth and the likelihood of some ridership drop-off, according to the AECOM report.

Vehicle kilometres travelled: Tracked through odometer readings or GPS transponders, this method of road charging would have to go through a pilot phase. Based on total kilometres travelled in the region in 2009, a charge of .03 cents/km might generate up to $1.9 billion by 2021, taking into account the inevitable reduction in trips as drivers adjust their habits. Implementing such a system would be costly but could dramatically affect driver behaviour as well as raising funds.

Source: AECOM KPMG Big Move Implementation Economics: Revenue Tool Profiles

Revenue tools that didn’t make the short-list
- Tax on car insurance
- $2 per day car rental fee
- Carbon tax
- Downtown cordon fee similar to London and Stockholm
- Corporate income tax
- Vehicle registration taxes
- New car tax
- Land transfer tax
- Parking sales tax
- $10-a-night hotel room levy
- Income tax
- Tax increment financing
- Utility levy
- Driver's licence tax

[realcity]

ie. you can forget about Hamilton being a part of the big move for 15 years

[SteelTown]

Once they find the revenue they'll start spending right away. It'll be like a mortgage. They do the same for hospitals, build em and pay over 25 years.

[bigguy1231]

I don't think any of those new taxes will ever see the light of day. It would be political suicide for any government that imposes new taxes for public transit or roads. We already pay taxes and even special gas taxes for roads. Rather than using that money for other purposes as they have been doing for years it should be put back into funding roads and public transit as it was intended.

[Jon Dalton]

Noone wants more taxes, just as I'm sure noone did in London or Stockholm where they introduced congestion charges (which didn't make our list as it's apparently a tougher sell than anything else)

But how else to raise the money? Whatever we are spending our gas taxes on now, which is mostly infrastructure, it has been known for some time that they do not cover the costs of infrastructure. In fact, both roads and transit have been partially subsidized by general revenues.

When it gets to the point that people can't get to work and businesses can't move goods, people will accept that improvement costs money. We have one toll road, Highway 407, which people do pay to use even though they already pay gas tax, insurance, etc. If that's the case, why not a toll lane on the 403 or 401? At least you have the option to move if you can afford it. And with the Metrolinx projects paid for, there will be options to avoid the highway altogether.

[durandy]

Originally Posted by bigguy1231

I don't think any of those new taxes will ever see the light of day. It would be political suicide for any government that imposes new taxes for public transit or roads. We already pay taxes and even special gas taxes for roads. Rather than using that money for other purposes as they have been doing for years it should be put back into funding roads and public transit as it was intended.

It used to be political suicide to even mention new taxes but now people like Andrew Coyne, the Board of Trade, developers are talking about the need. People are starting to understand that there's a cost to inaction. And when we start to have the most congested cities in the continent then something's got to give. Plus tolls are already a fact of life on the 407 and south of the border - they really won't be that hard to get used to.

[bigguy1231]

Originally Posted by durandy

It used to be political suicide to even mention new taxes but now people like Andrew Coyne, the Board of Trade, developers are talking about the need. People are starting to understand that there's a cost to inaction. And when we start to have the most congested cities in the continent then something's got to give. Plus tolls are already a fact of life on the 407 and south of the border - they really won't be that hard to get used to.

The tolls South of the border are much more reasonable than they are or would be here. I travel to Florida a couple of times a year and the only two areas where I hit tolls are in New York state between the Buffalo city limits and the state line with Pennsylvania and a small stretch of the West Virginia Turnpike. The New York section costs $2.10 for a 90 mile trip and the West Virginia toll just went up to .50 cents for a 75 mile trip. New York has already voted to drop the tolls, they just haven't set a date. Most states don't have any toll roads and I have yet to see tolls in any of the larger cities I have travelled through on many trips in the US.

[mattgrande]

You clearly haven't driven through Chicago... That place is toll central.