The City of Montreal will embark on a project this fall to find solutions to diversify its revenue streams, which depend primarily on property taxes.
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In October, she will host a Montréal Taxation Forum, followed by a Municipal Taxation Summit in Spring 2023. The city hopes these events will allow it to create a “road map” to guide it in moving forward with its taxation project.
“Cities have growing responsibilities, but revenue streams are limited. The property tax is no longer enough,” said Montreal Mayor Valérie Plante.
In addition to its traditional responsibilities, the city is increasingly taking on a role in matters of sovereignty such as housing, public safety and homelessness.
“Our goal is to identify sustainable and recurring sources of funding, adapted to these new challenges,” explained Dominique Ollivier, President of the City’s Executive Committee.
Currently, 63% of the city’s revenue comes from property taxes. Ms. Ollivier wants to raise up to $300 million more annually to support the city government as it will require large investments in the coming years to bring its infrastructure up to date.
No track is privileged at the moment.
“The example that comes to mind is that of the city of Percé, which introduced a tourist tax. How could you do that in Montreal? We want to see what is being done around the world,” Ms Ollivier explained.
Parallel to their projects, the city will set up a committee of experts by the end of June to support them in their efforts.
“Although it took administration five years to present a new tax project, Ensemble Montréal will respond to this umpteenth consultation. We must find a way together to better fund infrastructure and services for citizens,” responded Aref Salem, leader of the official opposition.
However, he warns that this should not come at the “burden” of taxpayers, who are already struggling with the rising cost of living.