Ontario’s transportation agency is recommending a one per cent sales tax increase, a parking levy and an increase in development fees to help fund a massive transit expansion throughout the Greater Toronto and Hamilton Area.

Metrolinx released their final report on the possible revenue tools on Monday that could be used by the provincial government to fund the proposed transportation network, called ‘The Big Move.’

The four tools proposed in the report are:

  • A one per cent increase to the HST
  • A five cents per litre regional fuel and gas tax
  • A 25 cents per day business off-street parking levy
  • A 15 per cent increase to development charges

An estimated 64 per cent of the funding would come from the HST hike, 15 per cent would come from each the gas tax and business parking levy, and five per cent would come from the development charge increase, according to the report.

The agency is also recommending other tools, such as paying for parking at Metrolinx stations and so-called high occupancy toll lanes.

Metrolinx CEO Bruce McCuaig said southern Ontario differs from other major North American hubs, such as Montreal, Vancouver and New York City, in that transit relies almost entirely on government funding, whereas other regions benefit from dedicated funding tools.

“We’ve come to learn the traditional approach we’ve taken in the Greater Toronto and Hamilton area, relying on year-to-year government funding, has not been successful over the past generation of time,” McCuaig said during a Metrolinx meeting Monday morning.

He added that gridlock in the region hurts the environment and the economy.

McCuaig said gridlock costs the average household an estimated $1,619 yearly, whereas the new transit funding tools would cost the average home $477 yearly.

The proposed revenue tools would cost a senior who drives occasionally and uses transit a total of $140 per year, and a student who only relies on transit would pay $117 annually, the report estimates.

McCuaig said that “equity across the region” was one of the most important considerations made in the report.

He said 41 per cent of the transit funds would be generated in the 416-area of the region and about 42 per cent of the investment would be made in Toronto.

An estimated 59 per cent of the funding would be generated in the surrounding 905 region, where the remaining 58 per cent of the investment would be made.

Premier Kathleen Wynne will use the report to determine which levies she'll choose to raise the billions of dollars needed to fund the expansion.

Wynne has already ruled out hiking property taxes, but is in favour of creating so-called high occupancy toll lanes.

A spokesperson for Wynne told The Canadian Press that the legislation will likely come in spring 2014.

However, the minority Liberal government will need the support of either the NDP or Progressive Conservatives to implement any new funding tolls.

While both opposition parties have said they will oppose any new fees, Metorlinx chair Robert Prichard said he’s “optimistic” about the proposal.

“The opportunity for the (Greater Toronto and Hamilton Area) is enormous,” Prichard said during a news conference on Monday. “The challenge of not acting is overwhelming…because of the growth we will continue to experience in the region.

“We must embrace a plan,” he continued. “We put our best advice forward and I’m confident through the months of deliberation of the political leadership, provincially and municipally, they will come to a positive conclusion.”

Toronto Mayor Rob Ford has said he opposes any tax increase or levy to fund The Big Move.