Federal Gas Tax Fund
The federal Gas Tax Fund (GTF) was first announced in the 2005 federal budget. It currently provides $2.1 billion annually to municipalities across the country – a stable and predictable source of funding to support investments in municipal infrastructure. The GTF’s flexibility and predictability allows municipalities to plan for the future and invest in projects that address local priorities.
The GTF was legislated as a permanent source of funding in 2011, and in 2013 it was indexed at two per cent per year, in $100 million increments.
The federal GTF and Toronto
In 2014, the City entered into an Administrative Agreement with the Government of Canada, the Province of Ontario and the Association of Municipalities of Ontario (AMO) that governs the flow of funds from 2014 to 2023. Canada transfers the GTF directly to Toronto in semi-annual instalments (July and November), after receiving Toronto’s annual report.
From 2005 to-2015, the City received more than $1.33 billion in GTF, which was directed to the Toronto Transit Commission to leverage more than $3.1 billion of investments in the City’s transit
GTF funding has been used for the:
- purchase of replacement buses, Toronto Rocket subway cars, Wheel-Trans buses and Light Rail Transit vehicles;
- the Easier Access Program;
- modification of the Wilson Carhouse;
- construction of the Leslie Barns Streetcar Maintenance and Storage Facility; and
- other various transit infrastructure assets.
In 2017, the City of Toronto received approximately $159.8 million. In total, the City’s 2017 to 2026 Capital Budget and Plan reflects $1.667 billion in funding to be received through the GTF. Priority projects includes a continued focus on fleet replacement and renewal (buses, streetcars and subways).