The Federal Gas Tax Fund

Overview

The federal Gas Tax Fund is a permanent source of federal funding for local infrastructure. Funds are provided to communities up front, twice a year, and can be strategically invested across 17 project categories to address local priorities. Municipalities can also pool, bank and borrow against this funding.

AMO's ROle

AMO administers the Fund to all municipalities in Ontario except for the City of Toronto in accordance with the Administrative Agreement on the federal Gas Tax Fund - a multilateral agreement between Canada, Ontario, the City of Toronto and AMO. Municipal Funding Agreements govern AMO's partnership with each municipality. See our agreements page to learn more.

Allocations

Canadian municipalities receive over $2 billion from the federal Gas Tax Fund each year; Ontario's municipalities receive over $800 million. Funds are allocated to municipalities across the province on a per-capita basis. See our allocations page to find your community's share of the Fund.

 

The Need for Infrastructure Investment

Local infrastructure delivers the water that we drink, connects our families and communities, and brings us together for recreation and play. Much of this infrastructure is over half a century old and in need of upgrade or replacement – but funding is limited, our population is aging, and extreme weather events are increasingly common.

Municipal governments face myriad challenges in delivering services. And while some challenges affect all Ontarians, others are local. Communities with declining populations are expected to maintain a stable pool of infrastructure with a shrinking tax base; rapidly growing municipalities are expected to build new infrastructure to meet surging demand.

Read our research reports to learn more about the challenges to infrastructure investment facing Ontario's municipal governments.

Investments

AMO prepares annual reports describing investments of the federal Gas Tax Fund. Each consists of two parts: the first summarizes municipal investments, while the second contains financial information, audit reports, and other detailed information. Review our Annual Reports to learn about the scope and diversity of investments made by municipalities in Ontario.