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    Home » Montreal Drivers Face Steep Vehicle Tax Hike to Fund Public Transit

    Montreal Drivers Face Steep Vehicle Tax Hike to Fund Public Transit

    autoexpresscarBy autoexpresscarFebruary 23, 2025No Comments3 Mins Read
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    Montreal Drivers to Pay More for Public Transit

    Drivers in the Montreal area are facing a significant increase in their vehicle registration tax. The tax is set to more than double, rising from $59 to $150 per year.

    Montreal-area mayors voted Thursday to make car owners pay more to increase funding for public transit, promising to increase the tax on vehicle registration from $59 to $150 unless the province commits more money.  (Simon-Marc Charron/Radio-Canada)
    Montreal-area mayors voted Thursday to make car owners pay more to increase funding for public transit, promising to increase the tax on vehicle registration from $59 to $150 unless the province commits more money. (Simon-Marc Charron/Radio-Canada)

    This decision, made by the Communauté métropolitaine de Montréal (CMM), which represents over 80 municipalities in the area, is a response to the financial challenges faced by public transit agencies.

    The CMM argues that a lack of provincial funding is the driving force behind the tax hike. They are requesting $421 million to cover deficits, but the province, represented by Transport Minister Geneviève Guilbault, has only offered $200 million.

    “I think that today we’re faced with a choice which is very difficult, which no one wants to make, but which is necessary if we want to maintain public transport,” said Laval Mayor Stéphane Boyer. He emphasized the difficultly of making this decision.

    Montreal-area mayors are asking the province for $421 million to make up transit agency deficits.  Transport Minister Geneviève Guilbault has offered $200 million. (Simon-Marc Charron/Radio-Canada)
    Montreal-area mayors are asking the province for $421 million to make up transit agency deficits. Transport Minister Geneviève Guilbault has offered $200 million. (Simon-Marc Charron/Radio-Canada)

    The CMM points to several factors creating a financial strain on transit agencies. These include decreased ridership following the pandemic, inflation, and the diversion of revenue to the Réseau express métropolitain (REM) light-rail network. These circumstances have resulted in a “perfect storm” of lost revenue.

    Some municipalities, particularly those with limited or no public transit service, have voiced opposition to the tax increase. They feel it unfairly burdens their residents. For example, Mercier, Que., Mayor Lise Michaud stated, “We don’t have any public transit and now we’ll have a tax increase for the cars? For us it’s nonsense.”

    Laval Mayor Stéphane Boyer said the tax increase was a difficult but necessary choice. (Radio-Canada)
    Laval Mayor Stéphane Boyer said the tax increase was a difficult but necessary choice. (Radio-Canada)

    Mayor Boyer countered that those without local transit still benefit from a well-funded system. “It’s a collective need and we must maintain it,” he said. He further noted the congestion that would arise if all public transit users drove cars. “If the hundreds of thousands of people who board the Metro every day all had a car, we would see hellish congestion.”

    The tax increase is scheduled to take effect next year, but the CMM has left open the possibility of adjustments if more provincial funding becomes available. The CMM, however, insists the increase is not a political maneuver.

    Advocacy groups, such as L’alliance TRANSIT, support the tax increase. They are urging the province to commit to a long-term funding plan to ensure the stability of public transit.

    Montreal public transit Quebec tax increase transit funding vehicle tax
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