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    Home » Montreal Drivers Face Steep Vehicle Tax Hike to Fund Public Transit

    Montreal Drivers Face Steep Vehicle Tax Hike to Fund Public Transit

    autoexpresscarBy autoexpresscarFebruary 23, 2025No Comments2 Mins Read
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    Montreal Drivers to Pay More for Public Transit

    Drivers in the Montreal area are facing a significant increase in their vehicle registration fees. The Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities, voted to raise the tax from $59 to $150 annually.

    Montreal-area mayors voted Thursday to make car owners pay more to increase funding for public transit, promising to increase the tax on vehicle registration from $59 to $150 unless the province commits more money.  (Simon-Marc Charron/Radio-Canada)
    Montreal-area mayors voted Thursday to make car owners pay more to increase funding for public transit, promising to increase the tax on vehicle registration from $59 to $150 unless the province commits more money. (Simon-Marc Charron/Radio-Canada)

    This decision comes as the Montreal-area municipalities grapple with a public transit funding crisis. The mayors claim that the province’s failure to increase financial support has left them with few options to maintain public transportation services.

    Funding Crisis

    The mayors say transit agencies are still recovering from a substantial drop in ridership during the pandemic. They also cite inflation and the financial drain of the new Réseau express métropolitain (REM) light-rail network as contributors to a “perfect storm” of lost revenue.

    Montreal-area municipalities are requesting $421 million from the province to cover transit agency deficits. However, Transport Minister Geneviève Guilbault has offered only $200 million. The minister has emphasized the need for transit agencies to become more fiscally responsible and reduce expenses.

    Montreal-area mayors are asking the province for $421 million to make up transit agency deficits.  Transport Minister Geneviève Guilbault has offered $200 million. (Simon-Marc Charron/Radio-Canada)
    Montreal-area mayors are asking the province for $421 million to make up transit agency deficits. Transport Minister Geneviève Guilbault has offered $200 million. (Simon-Marc Charron/Radio-Canada)

    Laval Mayor Stéphane Boyer stated that the tax increase was difficult but necessary to maintain public transit services.

    Uncertain Future

    Although the tax increase is scheduled to take effect next year, the CMM has left open the possibility of dropping or reducing the hike if the province provides additional funding. The CMM insists, though, that the increase is not a tactic.

    Laval Mayor Stéphane Boyer said the tax increase was a difficult but necessary choice. (Radio-Canada)
    Laval Mayor Stéphane Boyer said the tax increase was a difficult but necessary choice. (Radio-Canada)

    “It’s not a strategy. We’re not here to be in a political war,” said Boyer.

    Montreal Mayor Valérie Plante acknowledged the difficulty in asking drivers to pay more but emphasized that the province had put the CMM in a difficult position.

    Differences in Opinion

    The tax increase has not been supported by all municipalities. Some, particularly those south and west of Montreal with limited public transit options, feel it is unfair to impose this fee on their drivers.

    Boyer argues that municipalities with limited public transit still benefit from a well-funded regional system.

    funding mayors Montreal public transit Quebec transportation vehicle tax
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