Montreal Vehicle Tax to Skyrocket, Funding Public Transit
Drivers in the Montreal area are facing a significant increase in their vehicle registration tax. The tax is set to more than double, jumping from $59 to $150, starting next year.
This decision was made by the Communauté métropolitaine de Montréal (CMM), representing over 80 municipalities in the region. The move is a direct response to the ongoing struggle for public transit funding.
Mayors have stated that they were pushed into this position because of the province’s reluctance to increase its financial contributions to public transit. They’re seeking $421 million to cover agency deficits, but the province has only offered $200 million.
Laval Mayor Stéphane Boyer highlighted the tough circumstances, stating the increase was “necessary if we want to maintain public transport.”
The transit agencies are still recovering from significant ridership declines during the pandemic. This, coupled with inflation and the REM light-rail network’s revenue draw, has created a financial strain, which the mayors describe as a “perfect storm.”
The CMM has left open the possibility of reversing or reducing the tax hike if the province steps up with more funding. However, they also made it clear the increase is not a bluff.
Montreal Mayor Valérie Plante expressed the difficulty of the situation, explaining that it was a hard choice to ask drivers for more money.
Not all municipalities are supportive of this tax increase, municipalities with limited public transit options expressed opposition. Some mayors voiced that it’s unfair to impose this tax on their residents when they lack adequate transit services.
Advocacy groups like L’alliance TRANSIT support the tax increase, urging the province to match the municipal effort with a stable, long-term funding plan.
Transport Minister Geneviève Guilbault has stated she intends to address the transit agency deficits before summer.
