Montreal Vehicle Tax Soars to Support Public Transit
Car owners in the Montreal area are set to see a significant increase in their vehicle registration tax starting next year. The tax, currently at $59, will more than double to $150. This decision comes after a vote by Montreal-area mayors to bolster funding for public transportation. The mayors say they were forced to act due to a lack of additional funding from the Quebec government.
The Communauté métropolitaine de Montréal (CMM), which represents over 80 municipalities in the greater Montreal area, approved the tax increase. According to Laval Mayor Stéphane Boyer, the decision was difficult but essential to maintain public transit services.
“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,” Boyer said.
Montreal-area municipalities have been in discussions with the Quebec government for years regarding public transit funding. Municipalities are struggling to recover from reduced ridership caused by the pandemic, increased inflation, and revenue diversion to the new Réseau express métropolitain (REM) light-rail system. These factors have created a financial strain for transit agencies.
To address the deficits, Montreal-area mayors requested $421 million from the province. However, Transport Minister Geneviève Guilbault has only offered $200 million. The minister has urged transit agencies to improve their financial management and reduce expenses.
The CMM has stated that the tax increase could be reconsidered or reduced if the province provides more funding. However, the increase is not a negotiating tactic. The municipalities emphasize the importance of public transportation for residents, citing its critical role in daily commutes.
While the majority supported the tax increase, some municipalities, particularly those with limited public transit options, expressed opposition. They argue that it is unfair to impose the tax on drivers who do not have sufficient access to public transportation.
L’alliance TRANSIT, a coalition of environmental and public transit advocacy groups, supports the tax increase, calling on the government to match the municipal contribution with a long-term funding strategy.
