Montrealers’ property taxes are likely to increase significantly next year, at least if city hall takes inspiration from the increases voted for in recent days by the boroughs.
These local taxes represent only a small portion of the final bill sent to property owners in the metropolis, but give an idea of the impact of inflation on municipal finances.
Local increases will be on average 9.3% in the 11 districts that have already adopted their budget (or are about to do so), according to data sent to The Press by the administration.
Local taxes represent less than 10% of the total property tax bill. The 10.4% increase in Villeray–Saint-Michel–Parc-Extension “represents an increase of $33” for the average single-family home (total property tax bill of $3,727), the mayor of Villeray argued on Tuesday. borough, Laurence Lavigne-Lalonde.
Tuesday, Mayor Valérie Plante justified the increase in local taxes that she will ask of owners in the Ville-Marie district, which she directs.
“The local tax was indexed by 5%,” she said, arguing that the environment, social solidarity and security had been budgetary priorities. “It is important for me to mention that in Ville-Marie, we have the lowest local tax rate of the Montreal boroughs, despite all the responsibilities we have. »
The day before, the mayor of Mercier–Hochelaga-Maisonneuve had delivered a similar plea.
“We are very rigorous about what we can do with the amounts we have,” argued Pierre Lessard-Blais, presenting a budget including a 7% increase.
We are regularly told that we tax too much, but that there is not enough [de services]. Money cannot be invented. If we want more resources on the ground, we need more financial resources.
Pierre Lessard-Blais, mayor of Mercier–Hochelaga-Maisonneuve
“Heartbreaking” increases
Valérie Plante’s office assured that the boroughs were doing their best in “a difficult economic context which also affects their finances”.
“The districts determine their local taxes themselves, which represent, on average, an increase of less than 1% in the general tax,” indicated press officer Béatrice Saulnier. “Nevertheless, these increases demonstrate the need to continue to find solutions to diversify income and to continue exchanges in the wake of the tax summit. »
The official opposition argues that the local tax increases in its districts were not voted for cheerfully.
“The increase in local taxes is a heartbreaking decision for our boroughs, which must deal with transfers from the central city that are largely insufficient to meet needs,” said spokesperson Alan DeSousa, in a written statement.
“This decision could have been avoidable if the Plante administration had responded to the requests made twice by the mayors of Ensemble Montréal for better financing of the boroughs,” he added, saying he hoped that the The administration can “put local services back at the heart of priorities”.
Luis Miranda, mayor of Anjou, argued in an interview with The Press that he had no choice but to significantly increase local taxes due to lack of funding. At 15.3%, the increase is at the top of the list.
“It’s an increase, it’s clear it’s an increase,” he said. We have been underfunded for payroll for a long time. […] We are one of the underfunded districts. We are limited in the personnel we can have. »
Local taxes, authorized by Gérald Tremblay as a means of financing specific discretionary projects, gradually gained importance in borough budgets. In Anjou, nearly a third of the budget now comes directly from taxpayers’ pockets, rather than transfers from the central city.
“A balance to find”
The City of Montreal will present its budget next month, including its own fiscal decisions. These will constitute the lion’s share of the changes that will affect the wallets of Montrealers.
At the start of the day, Tuesday, Valérie Plante refused to come forward.
Is it conceivable to cap the increase in inflation of 3% or 4% planned for the whole of 2023? “There are still things that need to be attached,” the mayor replied. Until the last minute, our administration, we watch, we are still lifting every stone. »
We are extremely aware of the pressure that Montrealers and all Quebecers are under in the face of inflation.
Mayor Valérie Plante
“I think our administration has always demonstrated a lot of sensitivity,” continued Mr.me Plant. It’s a balance to find. »
Last month, his right-hand man Dominique Ollivier stressed that he was faced with difficult choices when preparing Montreal’s 2024 budget.
“What are we going to have to cut?” Because we can’t do everything,” she said, adding that she was in the process of finalizing the budget. Reduction in spending and increase in taxes, “we look at both,” she continued. “All options are on the table, like every year, with the rigor that you know us to have. »
With the collaboration of Pierre-André Normandin and Isabelle Ducas, The Press