A primer on the Metro Vancouver referendum
In mid-March, residents of Metro Vancouver will receive mail ballots giving them a chance to vote in the region’s transit and transportation referendum. Ballots must be returned by mail by May 29.
Specifically, Metro Vancouver voters are being asked if they support a 0.5 percentage point increase to the provincial sales tax (officially known as the Congestion Improvement Tax), applied only in the Metro Vancouver region, in order to fund new public transit and transportation infrastructure.
On balance, for the reasons stated here, we think the benefits of a YES outcome outweigh the negatives.
- Referenda are a terrible way to make tax policy. But a referendum is nevertheless before Metro Vancouver residents, and we can’t afford to ignore it.
- We all have a legitimate list of grievances with Translink. But this referendum isn’t about Translink; it’s about new transit and transportation infrastructure and services. All the money raised from the proposed tax increase is earmarked for these new investments.
- Funding a third of Metro Vancouver’s transit and transportation plan via a 0.5 percentage point increase in the local sales tax isn’t perfect. But it is a reasonable approach.
- While sales tax increases can have a regressive impact (hitting lower-income households harder as a share of their income), in this case the new investments will go mainly to transit improvements, which benefit lower-income people in particular (since they rely more on public transit). As a result, the proposal is likely progressive overall.
- Given the political will (and enough pressure), the provincial government could off-set any negative impact by increasing the PST credit for lower-income people, boosting the low-income carbon tax credit, or extending the discount U-pass to lower-income people.
- These new investments are needed. A YES vote would significantly enhance transit services, boost local employment, and represent an important next step in local climate action.
About the authors
Seth Klein
Seth Klein was a CCPA-BC research associate and the former CCPA-BC Director.
Marc Lee
Marc Lee is a Senior Economist with the Canadian Centre for Policy Alternatives. Marc joined the CCPA’s British Columbia office in 1998, and is one of Canada’s leading progressive commentators on economic and environmental policy issues. From 2009 to 2015, Marc led the CCPA’s Climate Justice Project (CJP), which published a wide range of research on fair and effective approaches to climate action through integrating principles of social justice. Marc continues to write about climate and energy policy, strategies for affordable housing, federal and provincial budgets and macroeconomics. Marc has an MA in Economics from Simon Fraser University and a BA in Economics from the University of Western Ontario. Marc is a past chair of the Progressive Economics Forum, a national network of heterodox economists. He also served as a Visiting Professor at Simon Fraser University’s School of Public Policy in 2024 to 2025.
Iglika Ivanova
Iglika Ivanova was a Senior Economist and the Public Interest Researcher at the CCPA-BC.