In the Rosemont district, Christian Dion owns two plexes – his “retirement fund”, he says – where his long-time tenants pay rents well below prices in the neighborhood, he assures.
But the announced increase in municipal taxes makes him “nervous,” he confides: his bill will increase by around $600 per year for his two properties. He fears having to increase the rent on his apartments, especially since the recent explosion in interest rates is costing him $1,300 more per month.
“I am not in favor of passing on an increase of $50 per month to my tenants,” laments Mr. Dion. This is my retirement income, but my tenants are also retired. »
My goal is not to siphon off my tenants who are good people, not millionaires. But I’m not a millionaire either. And there, I am no longer capable.
Christian Dion
The 63-year-old man, who was a mechanic in the aeronautics sector, says he has worked hard all his life and has reduced his lifestyle by more than half since retiring.
The increase in his tax bill is all the more difficult to swallow since he says he is worried about the management of finances at the City of Montreal. “Elected officials say they want to increase taxes or cut services, but they do not reduce their spending,” he laments.
” It will hurt ”
Since he opened his Plaza St-Hubert barbershop in 2018, David Lechasseur has had to face work that has gutted the street, the COVID-19 pandemic, the inflation of recent years and, now, a new increase in municipal taxes.
“At the moment our situation is stable. We are careful with spending, because our finances are very tight,” explains the merchant, co-owner of the Savvy Barbershop & Tattoo and the motorcycle mechanic garage and Idle café, rue Jean-Talon.
While the prices of all goods and services are increasing and recruiting employees is difficult, raising prices risks driving away customers, says Mr. Lechasseur.
“It’s a very fine line that we must not cross to respect what the consumer can pay,” he says.
For his two businesses, the municipal tax bill reaches $14,000 per year. The increase will therefore cost him approximately $700 for the next year.
“What makes this a difficult pill for entrepreneurs to swallow is that the latest scandal over municipal spending gives us the impression that the City is mismanaging its finances,” he laments.
He also recalls that several merchants and businesses will have to start repaying loans granted by the government during the pandemic next January. “The increase in taxes will affect our repayment capacity even more,” he points out. It will hurt. »
“On another planet”
Pierre Riopel owns the duplex where he lives in Villeray–Saint-Michel–Parc-Extension. “I like oysters, but I can’t buy them anymore,” he jokes, criticizing the tax increase decided on Wednesday by the Plante administration. It amounts to 5.2% on average for residences in the district.
“The general impression I have is that everyone is tightening their belts. And we have an administration that is on another planet. I do not perceive any kind of attempt to reduce costs, to reduce expenses,” he asserted, a few hours after the presentation of the budget. “I give an example: snow removal from cycle paths in winter, when there is no one on the cycle paths. »
Mr. Riopel intends to pass on to his tenant the proportion of the land increase which applies to the apartment
He calculates that the tax increase decided on Wednesday should only cost him a few dozen dollars. “But it’s added to the rest,” he explains. Internet costs and cell phone costs are increasing. We have to tighten our belts, even though I still have a good retirement income. »
Taxes down for downtown businesses
The Mister Steer restaurant has been serving hamburgers on Sainte-Catherine Street since the 1950s. Its owner, Jacques Gaspar, believes that property taxes are stifling downtown businesses. His bill was more than $250,000 this year.
PHOTO ROBERT SKINNER, THE PRESS
Jacques Gaspar, owner of the Mister Steer restaurant, downtown
Due to the stagnation (or even decline) in the value of certain commercial buildings in the neighborhood, commercial property taxes will drop on average by 0.9% in 2024, according to the City of Montreal. A unique case in Montreal.
“It helps”, but it is not enough, assures Mr. Gaspar.
If I sold diamonds in my business, I would have enough to pay this bill. But I sell burgers.
Jacques Gaspar, owner of the Mister Steer restaurant
The merchant calls into question the entire system of taxation based on the value of buildings. “It’s unreal to look at the value of a building and increase accordingly. This way of valuing a tax is not reasonable,” he said. “Until they change this method, it will remain illogical. »