TORONTO, (May 12, 2005) — Yesterday’s 2005 Ontario budget contained an amendment that would allow appraisals in order to establish vehicle value when transferring vehicles from multi-jurisdictional use to Ontario use.

Ontario Trucking Association President David Bradley applauded the key change to the administration of the Multi-Jurisdictional Vehicle Tax (MJVT) — something his group as been lobbying for years.

Currently, the OTA says when transferring a vehicle from multi-jurisdictional use to Ontario only use, carriers are required to pay an “exit tax” based on a value assigned by the Ministry of Finance based on a fixed depreciation schedule. Once this new MJVT change is enacted, the owner of the truck can appeal that predetermined value to an independent appraisal of the true value of the vehicle.

“I’m very pleased that the government has moved forward on this issue,” Bradley said. “There’s still more work to be done to make this tax equitable, but the fact that the government has moved forward on the use of appraisals is a good first step.”

The use of appraisals will only be permitted for vehicles purchased after Sept. 30, 2001, owned by the same person for more than 60 months, and where the MJVT was paid rather than point of sale retail sales tax.

Bradley was also pleased with the Budget’s focus on road transportation, and welcomed the $30 billion the Liberals are committing to infrastructure over five years. The money is earmarked for roads, highways and bridges, as well as crumbling schools and hospitals.

However, a major chunk of the funding will be dependant on the Liberals winning re-election in 2007.

“The budget acknowledges the fact that 70 percent of all freight shipped in Ontario moves by truck”, Bradley said. “In recognition of the importance of improving the flow of goods the budget makes a specific commitment to focus transportation spending on key economic corridors like the Hwy. 401 as well as at our borders with the U.S.”

The Budget includes “increasing investment to keep the highway system in a state of good repair in both southern and northern Ontario,” and “new highway projects to improve access to border crossings and address highway congestion and safety concerns.” More details about the possible projects will be outlined in the coming weeks, Finance Minister Greg Sorbara said.

As much as $25 billion of the cash will come from the province’s coffers, while the McGuinty government will be counting on Ottawa, the sale of Infrastructure Renewal Bonds, and the private sector financing for the balance.