|
1. TAX EXEMPTIONS FOR CYCLISTS EXONÉRATION D'IMPÔT POUR LES CYCLISTES |
Committee recommendation
Recommandation dU ComitÉ
Que le Conseil fasse pression sur
les gouvernements fédéral et provincial afin qu'ils mettent en place une
exonération d'impôt pour les cyclistes, parallèles aux objectifs liés à
l'environnement, aux transports et à la santé publique.
Documentation
1. Roads and Cycling
Advisory Committee’s report dated 20 January 2008 (ACS2008-CCV-RCA-0001).
Report to/Rapport au :
Comité des transports
and Council / et au Conseil
20 January 2008 / le 20 janvier 2008
Submitted by/Soumis par : Tom Seniuk, Chair/Président, Roads and Cycling
Advisory Committee/Comité consultatif sur les routes et cyclisme
Contact
Person/Personne ressource : Stephanie Brown Bellefeuille, Advisory Committee
Coordinator/Coordonnatrice des comités consultatifs
Clerk's Branch
(613) 580-2424 x 16760,
stephanie.brown@ottawa.ca
|
SUBJECT: |
|
|
|
|
|
OBJET : |
REPORT RECOMMENDATION
That the Roads and Cycling Advisory Committee recommend that the Transportation Committee recommend that Council lobby the provincial and federal governments for tax exemptions for cyclists, in concert with its environmental, transportation, and public health objectives.
RECOMMANDATION DU
RAPPORT
Que le Comité consultatif sur les routes et le
cyclisme recommande au Comité des transports de recommander au Conseil de faire
pression sur les gouvernements fédéral et provincial afin qu'ils mettent en
place une exonération d'impôt pour les cyclistes, parallèles aux objectifs liés
à l'environnement, aux transports et à la santé publique.
BACKGROUND
On
September 18, 2007, the Roads and Cycling Advisory Committee approved the
following motion:
1. That the City of Ottawa requests the provincial government create a Provincial Sales Tax (PST) exemption for bicycle purchases, thus eliminating the PST on these items;
2. That the City of Ottawa request the federal government create a Goods and Services Tax (GST) exemption for bicycle purchases, thus eliminating the GST on these items.
DISCUSSION
Surveys conducted in the City of Toronto reveal that persons with lower incomes are significantly less likely to be cyclists than those with higher incomes, suggesting that the issue of cost presents a barrier to bicycle use. Surveys like this certainly implicate a link between cost reduction, and bicycle ownership; one way to obtain such cost reduction is through bicycle purchase tax exemptions, at the provincial and federal levels (PST and GST).
With
a sales tax exemption, those who do not own a bicycle would have an incentive
to purchase one. For households that already own a bicycle, a tax exemption
would create an incentive to purchase higher performance models, making cycling
a more attractive alternative to driving. Promoting bicycle use is one
essential way to achieve the City’s environmental, transportation, public
health and recreation objectives; further, each time an individual chooses to
cycle rather than drive, the quality of life for all is enhanced. The benefits
derived from a person choosing to cycle rather than drive extend beyond the
cyclist's own benefit, which include:
-
improved air quality (green house gases are reduced)
- regular physical activity promotes better health, potentially deferring/removing certain health care costs (such as those related to inactivity and obesity)
-
improved traffic flow (fewer cars)
Additionally,
electric assist bicycles are an emerging environmentally friendly and
comfortable mode of transportation. They are capable of travelling at speeds of
up to 30 kilometres per hour, are silent and produce no emissions. Electric
assist bicycles range in cost from $600.00 to 1500.00, which make them
prohibitive for many consumers. A sales tax exemption for electric assist
bicycles would stimulate demand for these environmentally desirable vehicles.
All
levels of government have a clear responsibility to promote the public good
that results from bicycle use: clean air, good health and efficient
transportation infrastructure. The City of Ottawa is striving to increase
bicycle use, and needs the strong partnership of the provincial and federal
governments to achieve this objective.
In Fall 2007, the Committee was pleased to hear the Ontario government announce that it would exempt bicycles (under $1000) from the retail sales tax, as well as bicycle helmets and other bicycle safety equipment, effective December 1, 2007, until November 30, 2008. It is the Committee’s hope that, through the requested lobbying efforts of the City, not only will the federal government follow suit, but that any subsequent exemptions be made indefinitely.
CONSULTATION
Public
Works and Services Comment
Public
Works and Services can support initiatives, such as the Roads and Cycling
Advisory Committee recommendation, which are in keeping with the Transportation
Master Plan's objective to get more people cycling and to increase the cycling
modal split.
Planning,
Transit and the Environment comment
Environmental
Sustainability staff support measures to assist residents in obtaining access
to bikes. More residents cycling would
be beneficial in terms of sustainable transportation and meeting environmental
objectives and reducing emissions through reduced vehicle use. We would
however, suggest that consideration be given to limiting the tax exemption to
electric assist bikes (which can facilitate cycling amongst some who are not
physically capable or comfortable with cycle commuting) and bikes under $700
which would be the most likely option for cases where affordability is an
issue. Exemptions for higher-end bikes
and performance bikes are not as likely to result in any significant additional
errand or commuting travel and may consume a disproportionate (on a per bike
basis) financial share of any tax relief program.
Ottawa
Public Health comment
Ottawa
Public Health is supportive of this motion that would enable more people to get
active and reduce local air pollution.
Both of these outcomes would result in a healthier community.
FINANCIAL IMPLICATIONS
There are no financial implications to the City in respect to the recommendation.
SUPPORTING DOCUMENTATION
DISPOSITION
The
City Clerk to forward appropriate letters to the senior levels of government,
including:
Federal Minister of Finance - Jim Flaherty
Provincial Minister of Finance - Dwight Duncan
Federal Minister of Health - Tony Clement
Provincial Minister of Health - Jim Watson
Federal Minister of Environment - John Baird
Provincial Minister of Environment -
Laurel Broten
Federal Minister of Transportation -
David Collenette
Provincial Minister of
Transportation - Donna Cansfield