Montreal Vehicle Tax Set to Skyrocket
Drivers in the Montreal area will soon experience a significant increase in their vehicle registration tax. This decision, made by Montreal-area mayors, will more than double the current tax to $150, up from $59.
This increase is primarily aimed at boosting financial support for public transportation systems.
The Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities in the Montreal area, approved the tax hike after the province declined to increase public transit funding.
Context of the Decision
Mayors say they were forced to make a tough choice to maintain public transit services.
Laval Mayor Stéphane Boyer stated that although the decision was difficult, it was essential to keep public transit operational.
The municipalities have been in discussions with the provincial government for some time regarding funding for public transit. Transit agencies are still recovering from a drop in ridership related to the pandemic. This, combined with inflation and the shift of revenue to the new Réseau express métropolitain (REM) light-rail network, has created financial challenges for transit agencies.
To address the deficits, Montreal-area mayors requested $421 million from the province.
However, Transport Minister Geneviève Guilbault has only offered $200 million.
Guilbault has also emphasized the need for transit agencies to be financially accountable and find ways to lower their expenses.
Potential for Reversal
Although the tax hike is scheduled to take effect next year, the CMM has left open the possibility of reversing or reducing the increase should the province provide more funding.
Laval Mayor Stéphane Boyer emphasized that the tax increase was a difficult but crucial decision.
He highlighted the importance of public transit for those who rely on it for work and medical appointments.
Montreal Mayor Valérie Plante agreed that it was a tough decision to ask drivers for more money, stating that the province had placed the CMM in a difficult situation. Plante expressed the importance of a practical approach to ensure necessary services.
Municipal Dissension
Not every municipality agreed with the tax increase.
Some municipalities, particularly those south and west of Montreal with limited public transit options, felt the tax was unfair to their residents.
According to Mercier Mayor Lise Michaud, some municipalities lack bus services altogether, making the tax increase seem unreasonable.
Also, Vaudreuil-Dorion Mayor Guy Pilon voiced opposition, characterizing the tax as nonsense for areas without public transit.
Broader Implications
Boyer noted that even municipalities with limited transit options benefit from a well-funded system. He emphasized the collective need to maintain public transit, considering the congestion that would arise if everyone used cars.
L’alliance TRANSIT, a group advocating for environmental and public transit, supports the CMM’s decision, calling on Minister Guilbault to fulfill her role by proposing a long-term funding plan.
Guilbault has stated her intention to resolve the transit agency deficit issue before the summer.
