Montreal Drivers to Pay Significantly More for Vehicle Registration
Drivers in the Montreal area are facing a substantial increase in their vehicle registration tax next year, climbing from $59 to $150. This decision, approved by Montreal-area mayors, is intended to provide more financial support for public transit.
The Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities in the Montreal area, voted on Thursday to implement this tax hike. The mayors stated that they were compelled to take this measure due to the Quebec provincial government’s reluctance to increase its financial contributions to public transit.
Laval Mayor Stéphane Boyer expressed the difficult choice facing the municipalities, emphasizing the necessity of the tax increase for maintaining public transportation.
Montreal-area municipalities have been in discussions with the provincial government regarding public transit funding for several years. Municipalities are grappling with the ongoing recovery from a drop in ridership during the pandemic, compounded by inflation and revenue shifts towards the new Réseau express métropolitain (REM) light-rail network, creating revenue challenges for transit agencies.
The municipalities have requested an additional $421 million to address the deficit of the Autorité régionale de transport métropolitain (ARTM), the region’s public transit authority.
Quebec Transport Minister Geneviève Guilbault has offered $200 million and has insisted on the transit agencies’ need to be financially responsible and to seek expense reductions.
Mayor Boyer mentioned that, practically, the municipalities have few options besides looking for new funding sources.
However, the CMM has retained the option to potentially reduce or eliminate the tax increase if the province offers more financial support in the interim. The CMM underscores that the tax increase is not merely a tactic.
Mayor Boyer mentioned how the tax increase was a difficult, but necessary, decision.
According to Montreal Mayor Valérie Plante, although it was a difficult choice, the province had placed the CMM in a difficult position.
Some municipalities, mostly those south and west of Montreal lacking significant public transit services, voiced their opposition to the tax rise.
Lise Michaud, Mayor of Mercier, stated that they voted against the tax hike because some municipalities lack bus services entirely while Guy Pilon, Mayor of Vaudreuil-Dorion, called the tax increase “nonsense.”
Stéphane Boyer noted that municipalities with minimal public transit still gain from a well-funded public transit system, highlighting that it is a collective requirement that must be sustained.
