Montreal Vehicle Registration Tax Soars to Propel Public Transit
Drivers in the Greater Montreal area are facing a significant increase in their vehicle registration tax next year. The Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities, voted to more than double the tax, jumping from $59 to $150.
The mayors’ decision stems from a long-standing disagreement with the Quebec government over public transit funding. Municipalities are grappling with declining ridership since the pandemic, inflation, and revenue loss to the new Réseau express métropolitain (REM) light-rail network, creating a financial ‘perfect storm’ for transit agencies.
Laval Mayor Stéphane Boyer explained the tough choice: “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.”
Montreal-area municipalities requested an additional $421 million to cover transit agency deficits. However, Transport Minister Geneviève Guilbault has only offered $200 million. The government emphasizes the need for transit agencies to become more financially self-reliant and find ways to cut expenses. Mayor Boyer highlighted the limited options, stating, “We don’t really have the choice to find new sources of financing, and our options are quite limited.”
The tax increase could be avoided if the province increases its financial commitment. However, the CMM has signaled that the increase is not a casual threat. While some municipalities with limited public transit options opposed the tax hike, others recognize the collective benefit of a well-funded public transit system. As Boyer mentioned, “It’s a collective need and we must maintain it.”
Environmental and public transit advocacy groups, such as L’alliance TRANSIT, support the CMM’s tax increase, urging Minister Guilbault to establish a five-year plan for stable and growing public transit funding.
The future of the tax remains uncertain, dependent on further negotiation with the province. Guilbault has declared her intention to solve the transit agency deficit issue before the summer.
