Ontario is scrapping vehicle license plate renewal fees and the requirement for drivers to have a licence plate sticker effective March 13.
Speaking at a news conference on Tuesday morning in Richmond Hill, Premier Doug Ford said the government will also be introducing red tape legislation that will allow Ontario to issue refunds to people who have renewed their licence plate stickers since March 2020.
This will apply to all passenger vehicles, light duty trucks, motorcycles and mopeds. Currently, renewal fees stand at $120 a year for passenger vehicles in southern Ontario, and $60 in the North.
The announcement comes just over three months before the provincial election. According to Ford, the move signifies 1 billion going back into the economy, and will still benefit the province because it will create a broader tax base.
More than 7.5 million vehicle owners will benefit from the renewal savings, Ford said. This includes those that are owned by businesses. However, the cuts will cost the province $1.1 billion a year in lost revenue.
He says with the cost of living rising, his government is finding ways to reduce the burden “on the hard-working folks who need a break.”
“These savings add up. That means a little more money in your pocket to help with groceries or pay bills,” Ford said.
To receive a refund cheque, vehicle owners who have moved recently will need to confirm that their address information on their vehicle permit or driver’s licence is up-to-date on the province’s portal by Mar. 7 and pay any outstanding fees, fines or tolls.
Vehicle owners will still be required to renew their licence plate every one or two years at no cost to confirm their automobile insurance is valid. For businesses, no refunds will be given for the period of March 2020 to March 2022.
Renewal fees and requirements for licence plate stickers for heavy commercial vehicles and snowmobiles will remain the same.
The province has allowed people to use expired plate stickers since March 2020 to avoid having people gather in large groups at Service Ontario locations during the COVID-19 pandemic.
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