Why is OMVIC implementing a transaction fee?
Without an increase in registration fees for so many years, and faced with the costs of administering a new MVDA, and education programs to better achieve our consumer protection mandate, OMVIC’s Board had to find a way to cover operating expenses. To date, OMVIC has relied on dealer and salesperson renewal fees to pay the bills, and these fees haven’t increased in many years. Our preferred plan was to time our need for increased operating revenue with the introduction of the new MVDA. As a result of a delay in the government’s introduction of the new legislation, we have operated at a planned deficit for our last two fiscal years. With the Ministry of Transportation turning down our preferred fee collection request, adding a small fee to each transaction (other than wholesale) will allow OMVIC to handle operating costs. The alternative would have included a significant increase in renewal fees for dealers and salespeople.
