Montreal Vehicle Owners to Pay Significantly More in Tax
Drivers in the Montreal area are facing a considerable increase in their vehicle registration tax next year. The Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities, has approved a hike that will more than double the tax, rising from $59 to $150.
This decision comes as Montreal-area mayors grapple with a persistent funding gap for public transit.
The mayors are seeking additional financial assistance from the Quebec government to prevent the tax increase.
The Root of the Problem: Funding Gaps in Public Transit
The primary reason for the tax increase is the financial strain on public transit agencies in the Montreal area. These agencies are still recovering from a sharp drop in ridership during the pandemic.
Furthermore, inflation pressures and the diversion of revenue to the new Réseau express métropolitain (REM) light-rail network have worsened the financial situation. The municipalities describe this situation as a “perfect storm” that has significantly reduced revenue for transit services. The mayors have requested $421 million from the province to cover transit agency deficits.
However, the Quebec Transport Minister, Geneviève Guilbault, has offered $200 million, a sum that falls short of what the municipalities say is needed. The minister has also emphasized the need for transit agencies to practice greater financial responsibility and to find ways to cut expenses.
Mayors’ Response and Possible Alternatives
Mayors in the Montreal area have expressed their reluctance to impose the tax increase. Laval Mayor Stéphane Boyer described the decision as difficult but essential to maintain public transit services.
The CMM is open to reconsidering the tax hike if the province provides more funding. The increase is scheduled to take effect next year. The mayors have made it clear the increase isn’t a negotiation tactic.
Differing Perspectives Among Municipalities
While the majority of municipalities support the tax increase, some, particularly those with limited public transit options, have voiced opposition. Some mayors have described the increase as unfair to their residents who rely more heavily on personal vehicles. However, proponents of the tax point to the collective benefits of a well-funded transit system for the entire region.
Advocacy Groups’ Positions
L’alliance TRANSIT, a coalition of environmental and public transit advocacy groups, supports the tax increase, urging the provincial government to match the municipalities’ financial commitment. The group is calling for a five-year plan that ensures consistent and increased funding for public transit.
