BILL NO. 173
(as introduced)
1st Session, 65th General Assembly
Nova Scotia
4 Charles III, 2025
Private Member's Public Bill
Dedicated Funding for Public Transportation Act
Kendra Coombes
Cape Breton Centre–Whitney Pier
First Reading: October 2, 2025
Second Reading:
Third Reading:
An Act Respecting Funding
for Municipal Public Transportation
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Dedicated Funding for Public Transportation Act.
"eligible municipality" means a municipality that is, in accordance with subsection 4(2), eligible to receive a public transportation grant;
"municipality" means a regional municipality, a town or a municipality of a county or district;
"public transit right of way" means a right of way restricted at all times for the exclusive use of public transit vehicles;
"public transit trip" means a trip provided to a public transit passenger from the passenger's origin point to the passenger's destination point, regardless of whether the passenger is required to transfer from one public transit vehicle to another public transit vehicle during the course of the trip in order to reach the passenger's destination point;
"ridership number" means the total number of public transit trips provided by a municipality's public transit system within a calendar year.
3 (1) Subject to Section 9, a portion of the tax on gasoline and diesel oil that in each fiscal year is paid to the Province under Part I of the Revenue Act must be dedicated to the provision of annual grants to municipalities for public transportation uses.
(2) The portion of the tax that is dedicated to that purpose in each fiscal year that begins on or after April 1, 2026, is the amount calculated by multiplying two cents by the number of litres of gasoline and litres of diesel oil on which tax was paid during the previous fiscal year.
(3) Except where subsection (4) applies, the number of litres of gasoline on which tax was paid during the previous fiscal year is the number determined by dividing the total revenue from tax paid on gasoline for that fiscal year, as reported in the Public Accounts, by the tax rate per litre of gasoline in effect for that fiscal year under subsection 6(1) of the Revenue Act.
(4) Where more than one tax rate was in effect for gasoline during the previous fiscal year, the number of litres of gasoline on which tax was paid during that fiscal year must be calculated by
(a) for each period of the fiscal year during which a different tax rate was in effect, dividing the total revenue from tax paid on gasoline for that period by the tax rate that was in effect during that period to determine the number of litres on which tax was paid during each period; and
(b) adding together the number of litres determined under clause (a) for each period of the fiscal year during which a different tax rate was in effect.
(5) Except where subsection (6) applies, the number of litres of diesel oil on which tax was paid during the previous fiscal year is the number determined by dividing the total revenue from tax paid on diesel oil for that fiscal year, as reported in the Public Accounts, by the tax rate per litre of diesel oil in effect for that fiscal year under subsection 8(1) of the Revenue Act.
(6) Where more than one tax rate was in effect for diesel oil during the previous fiscal year, the number of litres of gasoline on which tax was paid during that fiscal year must be calculated by
(a) for each period of the fiscal year during which a different tax rate was in effect, dividing the total revenue from tax paid on diesel oil for that period by the tax rate that was in effect during that period to determine the number of litres on which tax was paid during each period; and
(b) adding together the number of litres determined under clause (a) for each period of the fiscal year during which a different tax rate was in effect.
(7) The amount described in subsection (2) is deemed to be a special purpose fund for the purpose of the Finance Act.
4 (1) Subject to Section 9, the Minister of Public Works shall annually pay a public transportation grant to each eligible municipality from the funds dedicated for that purpose under subsection 3(1).
(2) In order to be eligible to receive a grant under this Section, a municipality must dedicate an amount for public transportation uses that
(a) is equal to the amount of the grant; and
(b) exceeds the amount that the municipality budgeted for public transportation uses in the 2025-2026 fiscal year.
(3) The amount available for distribution to municipalities as public transportation grants must be allocated among eligible municipalities based on a formula that is weighted 70% on each municipality's ridership number for the previous calendar year and 30% on the population of the municipality.
5 For the purpose of assessing a municipality's ridership number, the Minister shall
(a) establish an administrative procedure for obtaining ridership data from the municipality; or
(b) enter into a data-sharing agreement with the Canadian Urban Transit Association in order to obtain the municipality's ridership data.
6 (1) Subject to Section 9, where a municipality is eligible to receive a public transportation grant under this Act, the Minister shall additionally provide to that municipality a ridership growth bonus.
(2) The ridership growth bonus to which an eligible municipality is entitled must be calculated in accordance with the following formula:
- ridership growth bonus = $1 x (municipality's ridership number in the previous calendar year - municipality's ridership number in the 2025 calendar year)
7 Subject to Section 9, where a municipality is eligible to receive a public transportation grant under this Act, the Minister shall additionally, as a dedicated public transit right of way bonus, provide the municipality with an amount calculated by increasing the total amount that the municipality is entitled to receive as a public transportation grant and a ridership growth bonus by one per cent for each kilometre of dedicated public transit right of way in the municipality.
8 A municipality receiving a public transportation grant, ridership growth bonus or dedicated public transit right of way bonus under this Act shall dedicate the amount received for public transit uses, which may include capital expenses, operating expenses or a combination of capital expenses and operating expenses.
9 The money required for the purpose of this Act must be paid out of money appropriated for that purpose by the Legislature.
10 This Act has effect on and after January 1, 2026.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2025 Crown in right of Nova Scotia. Created October 2, 2025. Send comments to legc.office@novascotia.ca.
