1. ENDORSEMENT OF BILL C-466

APPUI AU PROJET DE LOI C-466

COMMITTEE RECOMMENDATION

That Council send a letter to the Federal Minister of Finance and Federal Minister of Transport to support Bill C-466 “An Act to Amend the Income Tax Act: transportation benefits.”

Recommandation du Comité

Que le Conseil fasse parvenir une lettre au ministre fédéral des Finances ainsi qu’au ministre fédéral des Transports pour leur signifier son appui au Projet de loi C-466 Loi modifiant la Loi de l’impôt sur le revenu (avantage relatif au transport).

DOCUMENTATION

1. Councillor Cullen’s report dated 12 April 2010 (ACS2010-CCS-TTC-0008).

Report to/Rapport au :

Transit Committee

Comité du transport en commun

and Council / et au Conseil

12 April 2010 / le 12 avril 2010

Submitted by/Soumis par : Councillor/Conseiller Alex Cullen

Contact / Personne-ressource : Councillor/Conseiller A. Cullen

(613) 580-2477, Alex.Cullen@ottawa.ca

CITY-WIDE / À L’ÉCHELLE DE LA VILLE

Ref N°: ACS2010-CCS-TTC-0008

SUBJECT:	ENDORSEMENT OF BILL C-466
OBJET :	APPUI AU PROJET DE LOI C-466

REPORT RECOMMENDATION

That the Transit Committee recommend Council send a letter to the Federal Minister of Finance and Federal Minister of Transport to support Bill C-466 “An Act to Amend the Income Tax Act: transportation benefits.”

RECOMMANDATION DU RAPPORT

Que le Comité du transport en commun recommande au Conseil de faire parvenir une lettre au ministre fédéral des Finances ainsi qu’au ministre fédéral des Transports pour leur signifier son appui au Projet de loi C-466 Loi modifiant la Loi de l’impôt sur le revenu (avantage relatif au transport).

BACKGROUND

At the January 20, 2010, meeting of Transit Committee, committee members endorsed a proposal to send a letter to the Federal Minister of Finance requesting that the Non Refundable Tax Credit for Public Transit be made fully refundable.

The Canadian Urban Transit Association has long advocated for the tax exemption of employer-provided transit benefits with the federal government.

DISCUSSION

CUTA has requested the City of Ottawa support a recent Parliamentary Budget Office (PBO) analysis of Bill C-466, which would permit individuals to exclude the following amounts provided by the employer to an employee from the calculation of taxable income:

Up to $150 per month in public transit service expenses related to commuting to and from work;

Up to $150 per month in parking expenses related to the use of public transit or to use carpooling (e.g. park and ride services); or,

Up to $240 per year to purchase and maintain a bicycle used to commute to and from work. 

This legislation would give employers an incentive to offer employees transit subsidies. This policy would provide many important benefits:

• Provide direct financial savings to hundreds of thousands Canadian workers.

• Give employers a strong incentive to support efficient commute modes (cycling, ridesharing and public transit).

• Significantly increase public transit ridership, and so increase transit revenues and increase overall transit system productivity.

• Reduce energy consumption and pollution emissions, which helps meet Canada’s international emission reduction commitments.

• Reduce traffic congestion, road and parking facility costs, and traffic accidents, increasing economic productivity.

• Complement Budget 2006’s public transit tax credit.

• Demonstrate Canada’s commitment to urban transportation policy innovation.

RURAL IMPLICATIONS

N/A

CONSULTATION

No public consultation was undertaken in the preparation of this report.

Transit Services supports this Motion as it enhances the attractiveness of public transit to our residents and helps to build a sustainable community.

LEGAL /RISK MANAGEMENT IMPLICATIONS

There are no legal/risk management impediments to the implementation of this Report's recommendation.

FINANCIAL IMPLICATIONS

There are no financial implications associated with the report recommendation.

DISPOSITION

If approved by Council, the City Clerk and Solicitor’s office will prepare a letter for the Mayor’s signature to the Federal Minister of Finance and Federal Minister of Transport.