Montrealers should expect a hefty tax hike next year if we are to believe the words of the president of the executive committee, Dominique Ollivier, who refused on Wednesday to commit to limiting the tax hike to one threshold well below inflation.
Posted at 5:15 p.m.
As we know, the Consumer Price Index (CPI) jumped in 2022, reaching 8.1% nationwide in June. Unheard of for almost 40 years.
“We never said we were going to cap at 3% [la hausse des taxes] “replied M.me Ollivier to a question from a journalist on the increase to come in 2023. The elected official met the media on the occasion of the filing of the new assessment roll.
The Plante team won re-election in 2021 by promising not to increase municipal taxes by a percentage higher than inflation.
“Clearly, I can tell you that we will not go to 8%. In any case, I would be very surprised if we went to 8%, chained the number 2 of the Plante administration. We will try to stay within a tax bracket that allows both to meet our responsibilities as a metropolis, but also to respect the ability of Montrealers to pay. »
A surprise could await taxpayers if the City decrees a tax increase of 5% or more for 2023. For years, they have become accustomed to tax increases aligned more or less with the rate of inflation, which usually varied 1 to 3% per year. This is no longer the case this year.
But you will understand that with inflation which is 8% at the time of speaking, it is certain that, on the budget, that puts enormous pressure on expenditure. If revenues, on the other hand, remain stable, it will cause us challenges to balance the budget.
Dominique Ollivier, President of the Executive Committee of the City of Montreal
Last year, the City limited the increase in tax charges to 2% for residential buildings and 1.5% for non-residential buildings for the fiscal year, when the increase in the CPI had reached 3 .8% province-wide.
The City recently launched a project on municipal taxation to find ways to increase its revenues other than by raising property taxes. Just over 60% of the City’s budget is funded by municipal taxes, said Ms.me Olivier.
A 3% increase would be acceptable for the opposition
The words of the President of the Executive Committee are of great concern to the opposition at City Hall.
“Today we are anxious,” said Aref Salem, Leader of the Official Opposition, who spoke after Mr.me Ollivier, especially since the administration has given no sign of life on the next tax rate. I know that the mayor, last year, already said that she will not raise the tax rate beyond the rate of inflation. If we know that the inflation rate is 8%, that becomes extremely worrying. We are not reassured. »
Mr. Salem would find a tax increase of plus or minus 3% acceptable. He justifies this figure by explaining that the increase in the payroll of City employees, a major expense item in the budget and which is governed by collective agreement, will be well below 8% in 2023. “It is unthinkable that ‘we’re going ahead with 8%,’ he said emphatically.
An increase in the municipal assessment does not necessarily mean an increase in property taxes. To help you see more clearly, read our article published last month.