The study, unveiled before the Standing Committee on Finance and Economic Affairs' pre-budget hearings, compared how Ontario taxes its truckers compared to Manitoba, Quebec, Michigan, New York, Pennsylvania and Ohio.
The study found that Ontario trucking operations face the greatest burden of sales tax on equipment. The province has the greatest burden in taxing both warranty and non-warranty repair parts and labor. And it stands only with Quebec in taxing automobile insurance premiums.
OTA estimates that the impact of these taxes adds up to about $200 million a year in annual sales tax on the Ontario trucking industry that truckers from elsewhere generally avoid either through exemption or tax credits.
"These sales taxes are taxes on safety," said David Bradley, OTA president. "The more Ontario motor carriers invest in upgrading and maintaining their equipment, or taking out additional insurance, the more tax they pay."