RELEASE: As federal transit fund disappears, two potential new transit funding tools identified in Surrey competition

For Immediate Release

SURREY – Last Friday, Movement hosted Transit’s Next Top Funding Model at SFU Surrey campus. 300 spectators attended, and 8 teams presented their tools to fix the transit funding crisis. Two were crowned winners.

With the passage of the federal budget today, the Canadian Public Transit Fund is officially eliminated. The pool of funds dedicated for public transit investment is now smaller, despite overcrowding on buses and trains in our region and across the country.

Transit investment is overwhelmingly popular, and Movement hosted this event to get people talking about how to make that investment a reality.

Who won?

Judges’ Choice: Sales Tax

Presented by: Kiranjot Kaur Nahal, Khadija Rana and Jasleen Kaur Johal-Takhar

This team proposed a 0.5% or 1% increase to the Provincial Sales Tax within the boundaries of Metro Vancouver to fund transit investment.
PST is already exempted from many essential items, and charged more heavily on discretionary items like yachts, vapes, and hotel rooms. This is one of the only tools discussed that would target tourists and luxury goods.
BC currently has the third-lowest sales tax rate of any province, and a 1% increase would bring us to the median rate, equal to Ontario.
Many other places fund transit through a sales tax, and those taxes are often approved by referendum. In 2024, 87% of American transit referendums were successful.

Peoples’ Choice: Vehicle Levy

Presented by: Will Dawson and Philip Vargas

A vehicle levy would require almost no overhead – it would simply be added to motorists’ annual ICBC bill.
Many other places already have a vehicle levy. In Montreal, the levy is $180 per vehicle.
That kind of flat levy hits low-income people the hardest. In Washington State, they instead charge a percentage (1.1%) of the vehicle value. Using that rate, the owner of a 2012 Toyota Prius would pay $37/year and the owner of a new Lamborghini Huracan would pay $3200/year.
In addition, existing means-testing programs could be used to offer exemptions for people with low incomes.

What’s next for Movement?

The province of BC has committed to introducing a new revenue tool for transit in Metro Vancouver by 2027. We’re going to be building public support for that idea, and we’ll put these two winning revenue tools at the forefront of our efforts. The goal is to raise enough funds to:

Fill the funding gap
Boost bus service to address overcrowding and long wait times
Deliver major projects like the SkyTrain to UBC, Gondola to SFU, and BRT to every corner of the region
Introduce a low-income fare pass for adults to ensure no one is turned away from transit because they can’t afford the fare (we are one of the only cities in Canada or the US that does not have this).

We know that the province wants to put an end to the constant conflict over transit funding, and the congestion that results from underinvestment. When we look at transit funding in our peer cities like Seattle and Toronto, we can see that the cost of these new taxes will be minimal compared to the benefit they’ll provide to Metro Vancouverites. By making these investments, more and more people will be able to save $10,000/year by having one fewer car in their household.

Could the public ever get behind a new tax?

Transit funding is overwhelmingly popular among voters, even in conservative places. Equiterre’s survey of Canadians showed 81% support for investment in better transit (by contrast only 51% supported investment in EVs).

In the United States’ 2024 election, the vast majority of transit funding referendums passed, even as Donald Trump was elected. Taxes to fund transit were passed in Tennessee, Arizona, and South Carolina. Columbus, Ohio passed a 0.5% sales tax increase that would generate US$6.2 billion to expand transit, and invest in sidewalks and bikeways.

Others are embarking on massive transit-building projects that will transform their regions. Los Angeles has voted to raise income taxes multiple times to invest US$160 billion in transit. In Seattle, they fund transit expansion through a combination of property tax, sales tax, rental car tax, and a vehicle levy that is proportional to the value of each car. The result is a wide-ranging expansion plan that is rolling out new transit lines for decades to come.

While our competitors rapidly advance, Vancouver is standing still. Our most recent rapid transit line was funded seven years ago.

Metro Vancouver can do better. We can draw inspiration from our peer cities and consider new ways of funding transit.

Who were the judges?

In order from left to right,

David Wells, VP, Vancouver Community College
Wendy Waters, Real Estate Specialist
Talia Ahmad, Director, Métis Nation British Columbia
Meeru Dhalwala, Restaurateur, Lila
Shayna Rector Bleeker, Co-Founder, 7Gen
Naveen Girn, Stakeholder Relations Lead, Vancity

You can hear an interview with judge Wendy Waters and transit expert David Cooper on CBC radio directly after the event here.

Who sponsored this event?

JTA Development Company
Pacific Institute for Climate Solutions
SFU Renewable Cities
Zero Emissions Innovation Centre (ZEIC)
City of North Vancouver
City of Surrey
Houssian Foundation
Leading Mobility
Licker Geospatial
Modus Planning Design & Engagement
Pottinger Bird Community Relations
Arcadis
BCAA
Hilltop Public Affairs
SFU REACH-Cities
Small Change Fund
New Westminster District Labour Council
Vancouver Community College
Vancouver District Labour Council

What could we afford with better transit funding?

TransLink’s 2022 Access for Everyone plan proposes a doubling in transit service over ten years. This plan remains largely unfunded and undelivered. This doubling of transit service would have huge repercussions for regular riders. It would:

Tackle overcrowding and passups
Provide 24-hour bus service on more corridors
Add transit in currently un-served neighbourhoods
Increase frequency to reduce wait times
Fund 9 new Bus Rapid Transit lines
Boost HandyDART service by 60%
Build SkyTrain to UBC and the gondola to SFU

In addition to Access for Everyone, Movement is calling for funding to finally launch a Low Income Fare Pass. Metro Vancouver is one of the only major regions in North America that does not offer discounted transit fares for adults with low incomes. While a transit pass costs up to $200 per month here, a qualifying Calgary resident pays as little as $6/month. We know that transit plays an essential role in accessing healthcare, employment, and family. It should be accessible to all, regardless of their income. TransLink estimates such a program could cost $60-70 million, and significantly reduce fare evasion.

Which funding tools were considered?

Elimination of Homeowner Grant and ICBC Rebate
Sharing Property Transfer Tax Revenue
Land Value Tax
Land Value Capture
Employer transit pass program
Sales Tax – Judges’ Choice
Per-kilometre charge
Vehicle Levy – Peoples’ Choice

Did the federal government really cut transit funding?

Read more in this op-ed from David Cooper.

Movement: Metro Vancouver Transit Riders is a non-profit that represents our region’s one million transit riders. We’ve often been left out of the conversation, and we’re here to speak up for faster, more reliable, more abundant transit. We’re focused on the growing number of bus routes where riders are left behind by full buses, day after day, primarily in Surrey and South Vancouver, as well as the urgent need for bus lanes that cost almost nothing but massively improve commutes for hundreds of thousands of people.

Media Contacts:

Denis Agar
Executive Director
778-775-8806
denis@movementyvr.ca

http://movementyvr.ca
Movement: Metro Vancouver Transit Riders
200-475 W Georgia St.
Vancouver BC
V6B 4M9