Conservative Government Provides Long-Term Gas Tax Funding
April 21, 2021
We all know that infrastructure is essential to the development and long term sustainability of our communities. Our Government recognizes this need and is providing the necessary support needed by municipalities all across Canada to improve infrastructure. One of the ways we’re providing this support is through the Gas Tax Fund.

The Gas Tax Fund helps to build communities by providing predictable funding in support of municipal infrastructure that enhances the environment and quality of life. Furthermore, it benefits communities by providing funding to increase the capacity of communities to undertake long-term planning. Eligible investment categories include: public transit, drinking water, wastewater infrastructure, green energy, as well as solid waste management.

The money from the Gas Tax Fund flows through the provinces and territories to respect jurisdiction and to allow for flexibility in addressing local conditions. This process also recognizes that the goals of cities and communities is a multi-partner effort and that the challenges facing municipalities cannot be resolved by one level of Government, but rather can be best confronted by working together.

All provinces and territories will know how much they can expect to receive over the first five years for their municipalities and can plan to allocate these funds accordingly. The amount individual municipalities will receive is determined by the agreements reached with each province and territory.

Municipalities may pool and borrow against this funding, providing significant additional financial flexibility. Communities report on their use of the funds’ activities on an annual basis, to ensure accountability of the Fund.

In Budget 2007, our Government committed to extending the Federal Gas Tax Fund an additional four years until 2013-2014, delivering $8 billion in new predictable funding for sustainable infrastructure for Canadian cities and communities.

Following Budget 2007, Canadian communities continued to ask for stable, long-term funding from the Federal Government. The Government responded to this request in Budget 2008. This latest Budget announced that the Gas Tax Fund will be extended at $2 billion per year beyond 2013-2014 and will become a permanent measure. It will allow all municipalities, both large and small, to better plan and finance their infrastructure needs.

The Gas Tax Fund has benefited municipalities right here in Dufferin-Caledon. The 2008-2009 Gas Tax Revenue Allocations for municipalities located within Dufferin-Caledon are as follows:
  • Town of Caledon - $821, 995.10
  • County of Dufferin - $828, 786.16
  • Town of Orangeville - $410, 193.34
  • Town of Shelburne - $66, 968.35
  • Town of Mono - $112, 458.74
  • Amaranth - $61, 249.56
  • East Garafraxa - $35, 969.90
  • Melancthon - $45, 425.40
  • Mulmur - $50, 348.11
  • East Luther Grand Valley - $46, 172.75
Our Government committed to getting things done for Canadians and this included supporting infrastructure in Canadian communities all across Canada. The Gas Tax Fund is one way were doing this to ensure that municipalities, both large and small, can provide the much needed infrastructure to meeting growing demands and pressures.
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