Montrealers’ property taxes are set to rise significantly next year, at least if city hall takes inspiration from the increases boroughs voted for in recent days.
Published at 1:22 am. Updated at 5:00 am.
These local taxes make up only a small portion of the final bill sent to metropolitan property owners, but provide a glimpse of the impact of inflation on municipal finances.
According to data provided by the administration to La Presse, the local increases will average 9.3% in the 11 districts that have already adopted their budgets (or are about to do so).
Local taxes account for less than 10% of the total property tax bill. The Villeray-Saint-Michel-Parc Extension’s 10.4 percent increase “represents an increase of $33” for an average single-family home (total property tax burden of $3,727), Villeray’s mayor argued Tuesday. Laurence Lavigne-Lalonde.
On Tuesday, Mayor Valérie Plante justified the increase in local taxes that she will demand from property owners in the Ville-Marie district she leads.
“Local tax has been indexed by 5%,” she said, arguing that the environment, social solidarity and security had been budget priorities. “It is important for me to mention that, despite all the responsibilities, in Ville-Marie we have the lowest local tax rate of the Montreal districts. »
The day before, the mayor of Mercier-Hochelaga-Maisonneuve made a similar appeal.
“We attach great importance to what we can do with the amounts at our disposal,” argued Pierre Lessard-Blais, presenting a budget that included a 7% increase.
We are regularly told that we tax too much, but there isn’t enough [de services]. Money cannot be invented. If we want more resources locally, we need more financial resources.
Pierre Lessard-Blais, mayor of Mercier-Hochelaga-Maisonneuve
“Heartbreaking” is on the rise
Valérie Plante’s office assured that the districts would do their best “in a difficult economic environment that also affects their finances.”
“The districts set their own local taxes, which on average corresponds to an increase in the general tax of less than 1%,” explained press secretary Béatrice Saulnier. “Nevertheless, these increases highlight the need to continue to find income diversification solutions and to continue discussions in the aftermath of the tax summit.” »
The official opposition argues that the local tax increases in their districts have not been welcomed with enthusiasm.
“Increasing local taxes is a heartbreaking decision for our districts, which are struggling with transfers from downtown that are largely insufficient to meet needs,” spokesman Alan DeSousa said in a written statement.
“This decision could have been avoided if the Plante administration had responded to the calls made twice by the mayors of Ensemble Montréal for better financing of the districts,” he added, saying he hoped the administration would “restore local services “Heart of priorities”.
Luis Miranda, mayor of Anjou, argued in an interview with La Presse that he had no choice but to significantly increase local taxes due to a lack of funding. At 15.3%, the increase is at the top.
“It’s an increase, it’s clear that it’s an increase,” he said. We have been underfunded for payroll for a long time. […] We are one of the underfunded districts. Our available staff is limited. »
Municipal taxes, approved by Gérald Tremblay as a means of financing specific discretionary projects, gradually gained importance in municipal budgets. In Anjou, almost a third of the budget now comes directly from taxpayers’ pockets and not from transfers from the city center.
“A balance that needs to be found”
The city of Montreal will present its budget next month, including its own financial decisions. These will account for the lion’s share of the changes that will impact Montrealers’ wallets.
At the beginning of the day, on Tuesday, Valérie Plante refused to come forward.
Is it conceivable to limit the 3% or 4% increase in inflation planned for the whole of 2023? “There are still things that need to be put in place,” the mayor replied. Until the last minute, we watch our administration as we continue to lift every stone. »
We are very aware of the pressures that Montrealers and all Quebecers are under in the face of inflation.
Mayor Valérie Plante
“I think our administration has always shown a lot of sensitivity,” Ms. Plante continued. It is important to find a balance. »
Last month, his right-hand man Dominique Ollivier stressed that he faces difficult decisions as he prepares Montreal’s 2024 budget.
“‘What do we have to cut?’ Because we can’t do everything,” she said, adding that she was in the process of finalizing the budget. Reducing spending and increasing taxes, “we’re looking at both,” she continued. “Like every year, all options are on the table, with the consistency you know from us. »
In collaboration with Pierre-André Normandin and Isabelle Ducas, La Presse