Graphic of houses, people and streets

The federal Gas Tax Fund is a permanent source of funding for municipal infrastructure that helps increase productivity and economic growth, promote a cleaner environment, and build stronger cities and communities.

Permanent funding for municipal infrastructure

The federal Gas Tax Fund provides predictable, long-term, stable funding for local infrastructure, transferring more than $2 billion each year to Canadian municipalities.

The Fund will provide Ontario municipalities with $4.2 billion between 2019 and 2023. Municipalities can invest the Fund in 16 categories of infrastructure or use it to support capacity building initiatives that improve long-term planning.

Our local infrastructure is under pressure

Municipal governments own about two-thirds of all public infrastructure. Most of it was built more than 60 years ago and needs to be upgraded or replaced. Some communities have shrinking tax bases and struggle to rehabilitate existing infrastructure; others are experiencing fast-paced growth and must quickly invest in new services, such as public transit, to meet demand. Additional pressures on our local infrastructure such as the need to withstand more extreme weather, and an aging population, are felt in all communities.

Federal funding is meeting local needs

The federal Gas Tax Fund is the only program that transfers money directly from the federal government to Ontario’s municipal governments. The Association of Municipalities of Ontario (AMO) administers the Fund and distributes Gas Tax funds to municipalities on a per capita basis. Municipalities know much funding they will receive each year and they can plan accordingly.

Outcomes focused

The federal Gas Tax Fund provides real results for Ontarians.

AMO’s 2018 Outcomes Report describes benefits of the federal Gas Tax Fund produced between 2014 and 2016.

AMO’s Agreement with the Government of Canada

AMO has signed an Agreement with the federal and provincial governments and the City of Toronto to extend the Gas Tax Fund to 2023. AMO will continue to administer the Fund for all Ontario municipalities, except the City of Toronto.