Vehicle levy eyed again
It's been nearly five years since TransLink's hated plan to impose a vehicle levy was spiked by the province. And it's time to take a fresh look at the idea.
That's the pitch Maple Ridge mayor and TransLink director Kathy Morse is making as the transportation authority gears up to set its property tax rates for 2006.
She argues a vehicle levy makes sense - especially if it is used to reverse the trend of collecting more and more property tax from home owners.
"The vehicle levy is a true user pay," Morse said. "The problem with the property tax is you can have one property and 10 vehicles and pay the same 47 cents per $1,000 (of assessed value) as someone with one property and one vehicle."
People like condo dwellers who own their own home but no vehicle would stand to gain enormously if much of the property tax hit was replaced by a vehicle levy.
"It makes more sense to put the user pay on a vehicle than on the property tax," Morse said.
Unlike property taxes, where big increases in assessed value can force a homeowner to pay more even when the tax rate doesn't change, the levy on each vehicle could be kept fixed from year to year.
But if the concept is to have any chance, it has to have the backing of Victoria, Morse said, and she faces an uphill fight.
TransLink last proposed a levy of $40 to $120 for personal vehicles in 2000 and built its spending plans around the money it would generate.
But the rug was pulled out from under TransLink when the NDP provincial government bowed to public pressure and refused to pass enabling legislation, plunging transportation plans into chaos.
Transportation minister Kevin Falcon all but rules out any reconsideration of a vehicle levy
"I cannot think of any circumstances in which I'd entertain a vehicle levy," he said. "As long as I am the minister I'm not imposing new taxes on the public."
The Liberals had previously said a referendum would have to pass in the region before they'd consider the idea.
"If the public of the Lower Mainland is clamouring for TransLink to introduce a vehicle levy, naturally I would have to consider it," Falcon said.
But he added he "can't possibly imagine" area residents would back such a plan.
Morse said a vehicle levy also makes more sense in some respect than fuel taxes - right now 11.5 cents a litre goes directly to TransLink while Ottawa has also committed to return part of federal fuel taxes collected here.
"The gas tax is a great thing -if you don't count the fact that we're now becoming dependent on something we're actively trying to discourage," Morse said.
TransLink studies indicate an $89 levy on each vehicle in the GVRD would raise $125 million per year. That's more than half of the $217 million collected in property tax this year.
© Copyright 2007 Surrey North Delta Leader