On October 22-23, 2007 Toronto City Council approved the Personal Vehicle Tax (PVT) as a new taxation measure within the City of Toronto, pursuant to the statutory authority granted under the City of Toronto Act, 2006.

The report “Personal Vehicle Tax- Administrative Design Features and Implementation Authorities”, was approved by City Council on April 28, 2008.

The tax is designed to be compatible with the Provincial vehicle permitting system, and to be implemented in a manner that is fair to all taxpayers.

1. What is the PVT?

The City of Toronto’s Personal Vehicle Tax is a tax for residents of the City of Toronto who own or lease a personal vehicle (passenger vehicle, light commercial vehicle registered for personal use only, motorcycle or moped).

2. Who will be collecting the PVT?

City Council has requested that the Province of Ontario collect the PVT on the City’s behalf when you pay for your licence plate renewal.

3. What if I don’t pay the PVT when I renew?

The City has asked the Province to refuse your plate renewal request if your PVT is not paid, similar to the current requirements under the Province’s Drive Clean program.

4. When will the City start charging the PVT?

Council approved the PVT starting September 1, 2008.

5. How much will the PVT be?

Council approved the Personal Vehicle Tax at the following flat rates for each vehicle licence plate renewal:
-$60 per personal vehicle (passenger vehicles and light commercial vehicles for personal use) per year
-$30 per personal motorcycle (motorcycle and limited speed motorcycle) or moped per year

6. Who will have to pay the PVT?

All Toronto residents who own or lease a personal vehicle (passenger vehicle, light commercial vehicle registered for personal use only, motorcycle, or moped) will be responsible for paying their PVT.

7. Who will not have to pay the PVT?
Vehicles for Commercial Use
- The PVT does not apply to vehicles registered to commercial or institutional owners.

Historic Vehicles
- Owners with vehicles classified as “Historic” under the Provincial registration system that have a designated licence plate will not be charged the PVT. Other Exempt Individuals and Entities – other individuals and entities that are not charged the Provincial vehicle registration permit fee or are exempt under the City of Toronto Act, 2006 will not be charged the PVT.

8. How often will I have to pay the PVT?
PVT will be charged at the time of plate renewal.

9. I lease a vehicle. Will I have to pay the PVT?

Yes, if the vehicle plate is registered to you, either jointly, or as an individual, you will be responsible for the PVT.

10. I just bought a car and am getting a new licence plate – will I have to pay the PVT?

No. The PVT will only apply when you are renewing your licence plate.

11. I just moved into the City and notified the Ministry of Transportation of my new address. Will I have to pay the PVT for the period of time between when I moved to the City and when I have to renew my licence plate again?

No. The PVT is only charged when you renew your licence plate as a Toronto resident.

12. My licence plate expires after the PVT’s September 1, 2008 effective date. Will I have to pay the PVT if I renew my licence plate before September 1, 2008?

The City will collect the PVT for any vehicle plate renewal date that falls on or after September 1, 2008. If you renew a plate with an expiry date on or after September 1before the tax implementation date of September 1, the City is asking the Province to collect the tax the next time you renew your licence plate. This ensures that the implementation of the tax is fair to all taxpayers.

At the time of the subsequent renewal, you will also be required to pay the PVT for your next renewal period.

13. My licence plate needs to be renewed in July. When will I have to pay the PVT if it is effective as of September 1, 2008?

You will not be responsible for the PVT for your July 2008 licence plate renewal since the renewal date is before the effective date. You will begin to be charged the PVT the next time you renew your licence plate.

14. My licence plate expired a few months ago and I did not renew it. I want to renew my licence plate now- will I have to pay the PVT?

The PVT will only apply if the vehicle permit was set to expire on or after Sept 1, 2008. Collection of the tax begins September 1, 2008.

15. I have two vehicles: I am not going to renew my licence plate for the first car but I will be renewing the licence plate for my second car before September 1, 2008. Will I still have to pay the PVT for both vehicles?

No. The PVT will only be charged for the vehicle licence plates you renew. Collection of the tax begins September 1, 2008. If your licence plate was set to expire on or after September 1, 2008, but was renewed before that date, the PVT will be collected the next time you renew your licence plate. If the permit was set to expire before September 1, 2008, you will not be charged the PVT.

16. I am not going to renew my current 2-year licence plate ever – do I have to pay the PVT?

No. The PVT will only be charged for the vehicle licence plates you renew.

Visit www.toronto.ca for more information.