David Eby's BC NDP rules out creating a $150 annual vehicle levy for TransLink | Daily Hive

BC NDP's David Eby says he will not create a new annual TransLink levy of up to $150 on every vehicle in Metro Vancouver

David Eby. (Government of B.C.)

In 2025, the Government of British Columbia provided TransLink with what was described as a final provincial operating subsidy, helping to cover a major portion of the public transit authority’s revenue shortfalls over three years through the end of 2027.

At the same time, it also committed to enacting new legislation in 2027 to give the public transit authority a major brand-new revenue source beginning in 2028 — serving to reduce its reliance on fares, property taxes, the dwindling TransLink gas tax (due to the growing adoption of battery-electric vehicles and new vehicles with superior fuel economy), and subsidies it has received from senior governments since the pandemic hit in 2020.

Seven years on, Metro Vancouver’s public transit ridership has almost returned to pre-pandemic levels, but the continued prevalence of semi-remote work means more passengers are buying single-trip fares for their less frequent commutes instead of more expensive monthly passes. This shift has reduced fare revenue, TransLink’s second-largest source of operating revenue after property taxes.

Revenue growth was also constrained by relatively small annual fare increases through 2024 under pandemic-era subsidy agreements with senior governments.

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At the same time, TransLink has faced escalating operating costs, initially driven in large part by the pandemic. Labour costs have also increased following new collective agreements in recent years, including the deal reached just last month with 5,000 bus drivers, SeaBus workers, and maintenance workers that averted a disruptive service shutdown.

The $312 million in provincial operating subsidies announced in 2025 was intended to help cover TransLink’s revenue shortfalls through 2027. However, at the time, the provincial government did not specify what new revenue sources the promised legislation could create beginning in 2028.

Those subsidies covered about half of TransLink’s operating revenue shortfall, with the rest addressed through TransLink’s Mayors’ Council’s approval of larger-than-usual increases to fares, property taxes, and parking taxes in Metro Vancouver. Together, these measures averted a fiscal cliff and the threat of major public transit service cuts beginning in late 2025 or early 2026.

TransLink is now seeking a new revenue source that would generate at least $112 million annually starting in 2028, once the remaining provincial operating subsidies run out.

Since 2025, there has been considerable speculation about what TransLink and the provincial government might be considering that would require new legislation. The most widely discussed possibilities have included a vehicle levy, regional road tolls/mobility pricing, and a regional TransLink sales tax on goods and services, which was specifically rejected by Metro Vancouver voters in a divisive plebiscite in 2015.

An annual levy on every registered vehicle in Metro Vancouver has attracted particular attention. A similar proposal was considered in the early 2000s, shortly after TransLink was established as a standalone transit authority separate from BC Transit. At the time, local officials sought an annual $75 levy per vehicle to provide a predictable source of funding for operating and improving the transit network. The plan faced swift political backlash and was abandoned before it took effect.

Today, the idea of a vehicle levy has publicly resurfaced.

Over the past year, Daily Hive Urbanized has heard about internal discussions within the provincial government and TransLink about potentially introducing legislation to establish a vehicle levy.

This morning, CKNW radio host and former BC Liberal MLA Jas Johal offered more details. He said that before Premier David Eby called the snap election, the BC NDP-led provincial government and TransLink had been discussing ways to address the public transit authority’s long-term funding challenges, including an annual vehicle levy of $100 to $150. Under the proposal, ICBC would collect the levy during annual insurance renewals.

The Conservative Party of British Columbia subsequently issued a statement opposing such a new tax, accusing the BC NDP of planning it in “secret.”

“David Eby promised to tax the rich. Instead, he’s raised taxes on the lowest-income British Columbians, and now is threatening to introduce a new tax on cars. David Eby cannot be trusted. He will make life more expensive,” said Trevor Halford, the Conservative candidate for Surrey-White Rock.

When reporters asked about the possibility later this morning during an unrelated campaign platform announcement, Eby flatly ruled it out.

“This is how we always work with TransLink. Bring everything you’ve got. They did bring forward a proposal for a vehicle levy. We are not going ahead with the vehicle levy. That will not happen,” said Eby during this morning’s press conference.

Such a levy could effectively offset the savings drivers would receive under the BC NDP’s new proposal to suspend a portion of the provincial gas tax. Announced yesterday, that campaign promise would reduce gas taxes by as much as 30 cents per litre to provide drivers with immediate relief.

“British Columbians are struggling as it is. We did our announcement about the impact of gas prices yesterday because we know that drivers are already struggling. We can’t come to them for more. This comes up every election,” Eby added in response to questions about a vehicle levy.

In a statement to Daily Hive Urbanized upon inquiry this morning, TransLink said the provincial government is responsible for choosing the new revenue source, asserting that it has not advocated for any particular option.

The public transit authority also highlighted a growing problem with an existing funding source: declining gas tax revenue.

According to TransLink, average fuel consumption per vehicle has fallen 45 per cent since 2002 as vehicles have become more efficient and more drivers have switched to battery-electric models. It is collecting less fuel tax despite the growing number of vehicles on the road, and expects that revenue to continue falling.

TransLink warned that the consequences of leaving its long-term funding needs unresolved would also extend to cuts in road investments. It emphasized the public transit network’s role in supporting housing growth, helping people reach jobs, and moving goods across the region.

“We look forward to working with whichever party British Columbians elect to form government, on a sustainable path forward,” states TransLink.

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