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Federal Gas Tax Fund

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What is the federal Gas Tax Fund?

As part of the new Building Canada Plan, the renewed (2014-2024) federal Gas Tax Fund (GTF) provides predictable, long-term, stable federal funding to Canadian municipalities/communities. About $22 billion nationally is expected to flow to municipalities/communities over the 10 years.

The GTF will provide $2 billion nationally per year in federal funding to municipalities/communities. The Fund is indexed at 2 per cent per year, starting in 2014-15, with increases to be applied in $100million increments.  Nationally, funding is allocated using a base amount (territories and PEI) or on a per capita basis (all other provinces).

For further details on the design of the federal GTF including allocations and the 18 eligible project categories please see the Infrastructure Canada site.

How is the federal Gas Tax Fund administered/implemented in Ontario?

  • In Ontario funding is distributed and administered by three parties on the following basis:
    • The Association of Municipalities of Ontario (AMO) receives and allocates funds on a per capita basis to Ontario municipalities (except the City of Toronto).  For further details on the administration of the GTF to municipalities please see the AMO site.
    • The City of Toronto receives and administers its per capita share of funding. For further details on the administration of the GTF in Toronto please see the City of Toronto site.
    • The Ministry of Transportation (MTO) receives funds on a per capita basis for unincorporated areas and allocates funds based on kilometres of public roads managed by a Local Roads Board. For further details on the administration of the GTF in unincorporated areas please see the MTO site.
  • The Ministry of Municipal Affairs and Housing (MMAH) is the provincial signatory to the GTF Administrative Agreement through which the Fund is administered and implemented in the Province. MMAH works with Infrastructure Canada, AMO and the City of Toronto to implement the Agreement. MMAH does not allocate or administer funding.

  • The Administrative Agreement provides for the creation of an Oversight Committee and includes two members each from the federal government, the Province of Ontario (MMAH/MTO), the City of Toronto and AMO.  The Oversight Committee monitors the overall implementation of the Administrative Agreement in Ontario and serves as the principal forum to address and resolve issues arising from the GTF Administrative Agreement.