Province tops up gas tax funding to make up for lower gas sales

The Ontario government is providing more money to support the expansion and improvement of public transit services in York Region.

The funding is part of the province’s gas tax program which will allocate more than $379.5 million to help 107 municipalities operate and improve local transit. The funding for York Region is just over $17 million.

“Municipal transit systems are critical to the success of our communities, connecting people to jobs, housing and local businesses faster,” said Paul Calandra, MPP for Markham-Stouffville. “Our government continues to step up to provide the funding municipalities need to ensure transit remains a safe and reliable option in Markham-Stouffville and across Ontario.”

Funding for the gas tax program is determined by the number of litres of gasoline sold in the province during the previous year. Municipalities that support public transit services in their community receive two cents per litre of provincial gas tax revenue collected.

To make up for reduced gas sales due to ongoing recovery from the COVID-19 pandemic, this year’s gas tax program includes one-time additional funding of $80 million to help ensure municipalities can continue to support their transit systems.

“Public transit is a key driver of economic growth in Ontario, helping people get to where they need to go, whether it is to work, school, or run errands,” Transportation Minister Caroline Mulroney said. “As more people return to public transit, our government is providing municipalities with the funding they need to accommodate growing ridership while ensuring they can continue to deliver safe and reliable transit service for people in their communities.”

Gas tax funding can be used to extend service hours, buy transit vehicles, add routes, improve accessibility or upgrade local infrastructure.




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