After careful review and extensive consultation with stakeholders, OMVIC’s Board of Directors is announcing an increase in the transaction fee. Effective October 1, 2015, the transaction fee will increase to $10 per retail transaction; dealers will continue to be able to show the fee on the Bill of Sale. The salesperson and dealer base renewal fees will not increase.
“This was not a decision made lightly,” explained Carl Compton, OMVIC Executive Director, “but this increase in funding is absolutely necessary if OMVIC is to have the resources needed to meet its mandate.”
As was set out in the publicized Fee Increase Business Case, OMVIC’s Board is forecasting a deficit commencing this fiscal year when expenses are projected to exceed revenues. This is due to many factors including:
• Dramatically expanded resource requirements (and their associated costs) related to administration and enforcement of the new MVDA introduced by the Ministry in 2010
• Historical hold on salesperson and dealer base renewal fees. The dealer base renewal fee has not increased in 15 years; the salesperson renewal fee has not increased in 21 years
• Cost of living/inflation. There has been no fee increase to address these annual increases in expenses
The transaction fee increase takes effect October 1, 2015. As of that date dealers will be required to remit $10 for each retail transaction. Fees will continue to be remitted with the dealer’s annual renewal. As well, OMVIC is currently working on a process that will give dealers the option to remit transaction fees on a quarterly basis. More details related to this optional remittal system will be released as the processes are finalized.
OMVIC’s Board of Directors recognizes any fee increase may not be popular with all, and is
appreciative of those registrants who took the time to respond to the survey. Many provided
comments which were supportive of the increase; and others who were not supportive provided constructive feedback. In the end, the Board is confident this increase is prudent and necessary if OMVIC is to continue its efforts in maintaining a fair and informed marketplace, one in which the rights of consumers are protected, industry professionalism is enhanced and fair, honest and open competition for dealers is the standard.