Montreal Drivers Hit with Hefty Tax Increase for Public Transit
Drivers in the greater Montreal area are about to see a substantial increase in their vehicle registration fees.
The Communauté métropolitaine de Montréal (CMM), which represents over 80 municipalities in the region, voted to hike the tax from $59 to $150.
This move aims to generate much-needed funds for public transportation.
Traffic in Montreal. The increase in car registration fees is intended to fund public transit.
This decision arrives after a period of contentious negotiations between the municipalities and the provincial government concerning public transit funding.
Mayors express reluctance about the tax, but maintain it’s necessary to maintain public transit.
Laval Mayor Stéphane Boyer stated the decision was difficult but vital for preserving public transport.
The municipalities have long grappled with the province over transit funding.
Transit agencies are still recovering from a pandemic-induced drop in ridership.
Inflation and the revenue diversion to the new Réseau express métropolitain (REM) light-rail network have created a “perfect storm” of lost revenue, according to the municipalities.
A metro station in Montreal. Local authorities are seeking additional funding from Quebec.
Montreal-area mayors are requesting $421 million from the province to cover transit agency deficits.
The province, however, has only offered $200 million.
Transport Minister Geneviève Guilbault insists transit agencies must adopt more fiscal responsibility and identify ways to reduce spending.
“We don’t really have the choice to find new sources of financing, and our options are quite limited,” said Boyer.
Laval Mayor Stéphane Boyer. He highlighted the difficult choices being made by local decision-makers.
The tax increase is scheduled to take effect next year, but the CMM has left room for adjustments, so it’s not entirely set in stone.
The municipalities will consider dropping or decreasing the hike if the province provides more funding.
The CMM stresses that the increase isn’t a negotiating tactic.
Mayor Boyer emphasized the difficult but essential nature of the tax increase.
“It’s not a strategy. We’re not here to be in a political war,” Boyer said.
He also pointed out the importance of public transport for residents.
“There are people who depend on public transportation to get to the hospital, to go to work every day,” Boyer said.
Montreal Mayor Valérie Plante echoed the sentiment, acknowledging the difficulty of asking drivers to pay more.
Not all municipalities support the tax increase.
Some, particularly those south and west of Montreal with limited public transit options, deem it unfair.
Mercier Mayor Lise Michaud, whose municipality lacks bus service, voiced their opposition.
Vaudreuil-Dorion Mayor Guy Pilon also criticized the tax.
Boyer highlighted that even municipalities with less transit still gain from a robust system.
L’alliance TRANSIT, a coalition of environmental and public transit advocacy groups, supports the CMM’s tax increase.
Their coordinator, Samuel Pagé-Plouffe, urged Minister Guilbault to create a five-year plan providing reliable public transit financing.
Guilbault has stated her intention to resolve transit agency deficits before summer.
