TORONTO (Dec. 5, 2002) — An Ontario MPP’s recommendations to the Ontario Ministry of Finance may result in a 30 per cent reduction in a portion of municipal property taxes, according to the Ontario Trucking Association.

The OTA says that MPP Marcel Beaubien (Lambton-Kent-Middlesex) tabled a report last week that concludes the railways have a distinct advantage over trucking in certain areas, creating an inequity that should be eliminated by granting the trucking industry the same tax treatment as railways.

Ironically, The Railway Association of Canada and most recently, Canadian Pacific Railway President and CEO Robert Ritchie, have complained publicly that the government’s tax policies consistently discriminate against the railway industry. However, railyards are the only industry property in Ontario to be specifically designated as excess land for the commercial property class — which can qualify for up to a 30 per cent discount in most municipalities — whether it meets the general definition or not.

According to the OTA, Beaubien will be recommending that trucking terminal lands (not buildings), which serve a similar function to railyard lands, also be included in the excess land sub-class. Currently, to qualify for the excess land sub-class discount, a trucking company owning land surrounding a terminal would have to keep a portion of the land completely unused, and this portion would also have to be in excess of zoning requirements related to the building. Land used for occasional truck parking or outdoor storage does not meet the general definition of excess land.

Despite the rail industry’s claims of being overtaxed relative to other provinces and states, the report also stated that tax levels on main-line corridors appear to be competitive with other jurisdictions and with other modes of transportation, and no changes to the tax burden of the railways will be recommended.