Montreal Vehicle Registration Tax Set to Skyrocket
Drivers in the Montreal area are facing a significant increase in their vehicle registration fees starting next year. The tax is set to more than double, jumping from $59 to $150. This decision comes after a vote by Montreal-area mayors, who say they are forced to take this action due to a lack of sufficient public transit funding from the Quebec government.
The funds generated from the tax increase are earmarked for supporting public transportation.
Funding Crisis for Public Transit
Montreal-area municipalities have been in a protracted dispute with the province regarding public transit funding for years. Transit agencies are still grappling with the aftermath of a substantial ridership decline during the pandemic. Municipalities are also dealing with inflation and revenue diversions to the new Réseau express métropolitain (REM) light-rail network, a perfect storm that has led to substantial revenue deficits.
Mayors have requested $421 million from the province to cover the deficits of transit agencies. However, the Transport Minister, Geneviève Guilbault, has only offered $200 million. The province insists on transit agencies becoming more fiscally responsible and finding ways to cut expenses.
Tax Hike: A Difficult Decision
Laval Mayor Stéphane Boyer characterized the tax increase as a difficult but essential measure.
While the tax increase is scheduled for next year, the CMM has left room for maneuverability. The municipalities may consider dropping or reducing the tax hike if the province provides more funding.
However, the CMM insists the increase is not a bluff. They argue that the tax is needed to maintain vital public transportation services. Many residents depend on public transit to access essential services.
Differing Opinions Among Municipalities
Not all municipalities support the tax increase. Some, particularly those located south and west of Montreal with limited public transit options, consider the tax unfair for their residents.
Some municipalities without any bus services in their territory voted against the increase, stating that it makes little sense for residents to pay extra when they do not have access to public transportation.
Addressing the Broader Context
Mayor Boyer emphasized that even municipalities with limited transit access still benefit from a healthy public transit system.
Advocacy groups, such as L’alliance TRANSIT, have backed the CMM’s tax increase, asserting that the municipal community is doing its part and urging Minister Guilbault to respond with a long-term funding plan for stable public transit. Guilbault has indicated an intention to resolve transit agency deficit matters prior to the summer.
