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Skakun calls for city to seek a cut of fuel tax revenue

Coun. Brian Skakun will bringing a proposal to city council to actively seek a share of the fuel tax collected by the provincial government.

Coun. Brian Skakun will bringing a proposal to city council to actively seek a share of the fuel tax collected by the provincial government.

Skakun said he plans to bring a notice of motion to city council in the next couple of weeks proposing the city lobby the provincial government to share a portion of the fuel tax with municipalities in a manner similar to the federal government.

Currently the provincial government collects $0.145 per litre of gasoline through the Motor Fuel Tax and a further $0.0556 per litre through the Carbon Tax. Skakun sparked debate throughout the community earlier this month when he suggested the city consider creating a local fuel tax.

"The thing that has been told to me over and over recently is that people support a user pay fee system rather than adding the additional costs of increased road maintenance onto the property tax bills," Skakun said. "This is about trying to create a balance between the property owner and the users of our roads. Now is not the time to be satisfied with the status quo regarding our road rehabilitation program funding, in my opinion."

Skakun said creating a local fuel tax is not off the table, in his view, but would require substantial support from the community.

Under current legislation, the B.C. Transit Act provides municipal governments with the authority to collect a local fuel tax to fund public transit. Currently the Victoria Regional Transit Authority and TransLink in the Lower Mainland are funded through local fuel taxes.

If the city were to pursue a local fuel tax to fund public transit, it would require approval of the provincial government and the support of local taxpayers.

Currently the city spends approximately $1.7 million per year to provide public transit. The remainder of the $6.7 million service is funded through bus fares, advertising revenue and B.C. Transit grants.

Offsetting the city's spending on public transit could free up additional revenue for road maintenance, Skakun said.

Skakun said he'd like to see the provincial government create a special grant for northern communities to help cover the costs of snow removal and additional road maintenance not facing southern communities.

"This sounds like a long shot but Northern B.C. generates the lion share of the provincial wealth and ... we are at a competitive disadvantage because of our geography and climate..." Skakun said.