Montreal Vehicle Registration Tax to Surge
Drivers in the Montreal area are facing a significant increase in their vehicle registration tax, with the fee more than doubling next year. This decision, made by Montreal-area mayors, aims to generate more funding for public transportation. The tax is set to jump from $59 to $150.
The Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities in the region, voted on the tax hike Thursday. According to Laval Mayor Stéphane Boyer, the decision was a difficult but necessary step to sustain public transit services.
The municipalities have been grappling with the Quebec government over transit funding for several years. Agencies are still recovering from a decline in ridership during the pandemic, amidst rising inflation and revenue diverted to the new Réseau express métropolitain (REM) light-rail network. This confluence of factors has created a financial “perfect storm” for these agencies.
The municipalities requested an additional $421 million to address the regional transit authority’s deficit, the Autorité régionale de transport métropolitain (ARTM). In contrast, the province, represented by Transport Minister Geneviève Guilbault, has offered only $200 million. Guilbault has emphasized the need for transit agencies to be more fiscally responsible and to reduce expenses.
Despite the impending tax increase, the CMM has left room for adjustments. The possibility exists to drop or reduce the tax hike if the province comes up with more financial support in the interim. However, the CMM has stressed that the increase is not a mere negotiating tactic.
According to Mayor Boyer, the tax increase was a difficult but vital decision. Other city officials, such as Montreal Mayor Valérie Plante, echoed this sentiment, citing the province’s role in pressuring the CMM. Plante noted that the decision was pragmatic, a necessary measure to find solutions outside existing paradigms.
Not all municipalities supported the tax increase. Some, particularly those with limited public transit options, viewed it as unfair to their drivers. Mercier, Que., Mayor Lise Michaud highlighted that her municipality, which lacks bus service, opposed the measure. Similarly, Vaudreuil-Dorion Mayor Guy Pilon called the tax increase “nonsense” due to the lack of public transit.
Boyer emphasized that even areas with minimal public transit benefit from a robust system. He highlighted that if the hundreds of thousands of daily metro users were all driving cars, the resulting congestion would be overwhelming. L’alliance TRANSIT, a coalition of advocacy groups, supported the CMM’s move, with coordinator Samuel Pagé-Plouffe urging Minister Guilbault to create a long-term funding plan in collaboration with the municipalities.
