Montreal Vehicle Tax to Surge for Public Transit
Drivers in the Montreal area are looking at a significant increase in their vehicle registration tax, with the rate more than doubling next year.
The Communauté métropolitaine de Montréal (CMM), which represents over 80 municipalities in the region, voted to raise the tax from $59 to $150. This decision aims to generate more funds for public transit.
This action comes after the province declined to increase its public transit funding, pushing the CMM to explore alternative financial solutions. Mayors express that this was a difficult but essential choice.
Laval Mayor Stéphane Boyer stated, “I think that today we’re faced with a choice which is very difficult, which no one wants to make, but which is necessary if we want to maintain public transport.”
The increase is intended to address transit agency deficits, which have worsened due to factors like decreased ridership during the pandemic, inflation, and revenue diversion to the new Réseau express métropolitain (REM) light-rail network. Montreal-area municipalities are requesting $421 million to cover these deficits, while the province has offered $200 million.
Transport Minister Geneviève Guilbault has emphasized the need for transit agencies to become more fiscally responsible through expense reductions.
While the tax hike is scheduled for the coming year, the CMM has left room for adjustment. It could be reduced or eliminated if the province commits to providing more funding.
Mayor Boyer highlighted the importance of public transit for residents, saying it’s a shared requirement that has to be upheld. Some municipalities, mainly those with limited public transit options, have criticized the tax hike.
L’alliance TRANSIT, a coalition advocating for environmental and public transit, supports the CMM’s move. The group has called on Minister Guilbault to collaborate with municipalities on a long-term plan to ensure consistent funding for public transit.
Guilbault has stated her intention to resolve transit agency financial challenges before the summer.
