Commercial or industrial property owners in Montreal and Quebec remain by far the most heavily taxed major cities in Canada.
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At least that’s what a nationwide study by Altus Group shows, highlighting the significant share of business contributions to the budget of the province’s two largest cities.
“We are once again confronted with the reality that our dealers are the most heavily taxed in Canada,” lamented Sébastien Ridoin, interim general manager of the Association of Commercial Development Companies of Montreal (ASDCM). We can only be disappointed; Despite our work, the situation is not changing.”
In fact, at a non-residential tax rate of $34.54 per $1,000 of assessment, Montreal would impose a tax burden on businesses that is 4.33 times higher than on residential property owners. This imbalance in treatment between commercial and private taxpayers is the largest in the country.
Second on the list is Quebec City. The level of taxes reserved for non-residential property owners in this city ($36.01 per $1,000 assessment) is difficult to compare with that of residential property. Better than Montreal, corporate fees are still 3.53 times higher than residential.
Life is hard for companies
“Based on this data, we can actually say that Quebec cities are not making life particularly easy for businesses in their areas,” claims Caroline Bernard, Altus Group’s vice-president of property tax for Quebec.
Caroline Bérubé, Altus Group’s vice-president of property tax for Quebec. With kind approval
For comparison, all major cities in the country (see table) have lower tax rates and a lower commercial/residential property tax ratio than Montreal and Quebec.
The city of Toronto, for example, has a business tax rate that is 26% lower than Montreal’s. And compared to Ottawa, Montreal’s tax rate is almost twice as high as its counterpart.
20 years of decay
Mr. Ridoin, head of the ASDCM, says that while the situation for business people is getting worse in Quebec, it is trending toward improvement in other cities such as Toronto, Edmonton and Vancouver. “We need more concrete and faster measures to reverse the situation,” he said.
Why is that? “These are essentially political decisions,” replies the Altus Group tax specialist. In Quebec we choose to tax corporations more than ordinary taxpayers.”
A situation that, despite the risks, would only get worse. As evidence, Altus points out in its report that Montreal and Quebec had the lowest commercial-to-residential property tax ratio in the country in 2003. Twenty years later, their rates are now the highest.
Property tax rates in major cities across the country
Per $1000 Valuation
Commercially: $34.51
Reside: $7.97
Relationship*: 4.33
Commercially: $36.01
Reside: $10.21
Relationship: 3.53
Commercially: $9.38
Reside: $2.78
Relationship: 3.37
Commercially: $22.67
Reside: $6.57
Relationship: 3.36
Commercially: $21.70
Reside: $6.66
Radio: 3.26
Commercially: $34.54
Reside: $11.15
Relationship: 3.10
Commercially: $24.47
Reside: $9.45
Relationship: 2.59
Commercially: $28.34
Reside: $11.69
Relationship: 2.42
Commercially: $21.61
Reside: $11.17
Relationship: 1.93
Commercially: $16.61
Reside: $0.31
Relationship: 1.61
Commercially: $17.54
Reside: $11.66
Relationship: 1.50
*Ratio of commercial/residential property tax
Source: Altus Group (2023)
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