The first budget of the Marchand administration grants a new tax credit of 10% to traders, restaurateurs and hoteliers in the capital in order to mitigate the losses they suffered during the pandemic.
The measure, which is expected to affect 1,200 owners of commercial buildings, will reduce their tax bill by an average of $ 2,000. It will cost the city $ 2.5 million this year, according to budget documents presented on Tuesday.
To benefit from it, you must be the owner of a building whose spaces are occupied by restaurants, hotels, motels or tourist homes, or by retail businesses. The program should primarily benefit store-owners and will not be accessible to owners of shopping centers, for example.
This is a first for Quebec City. This measure was not among the commitments of Bruno Marchand and his strong and proud Quebec party (QFF) during the election campaign, the party having instead promised to reduce trade taxes in its second year in power.
Previously, municipalities did not have the right to grant tax credits, but a new law passed by the National Assembly in response to the pandemic has provided cities with new tools to do so. However, this is an exceptional measure, as the law is only valid for three years.
The budget presented on Tuesday also provides for a tax increase to the level of inflation to 2.2%, as announced during the election campaign. Spending this year will amount to $ 1.65 billion, up 4.7% from 2021.
The Marchand key
Since the new mayor has just been elected, this budget bears, in large part, the signature of the administration of Régis Labeaume.
In addition to the tax credit, the new team added a series of small measures linked to the electoral promises of strong and proud Quebec, such as the cancellation of late fees in libraries, the creation of the new office of international relations and the granting additional funds in the fight against homelessness.
These measures were financed by a financial cushion reserved by general management in anticipation of the transition.
The Marchand administration, which is in the minority on the city council, has also inserted into the budget elements of the program of the former party of Marie-Josée Savard, such as free swimming lessons for children.
Increase in the costs of the anaerobic digestion center
The first Merchant budget calls for nearly $ 20 million in new investments devoted to the fight against climate change. The lion’s share, or 11.3 million, is however added to the bill for the anaerobic digestion center started under its predecessor.
The price of the project, first announced at 190 million, has increased by more than 10% over the years – an overrun due in part to the pandemic, according to the City Manager, Luc Monty, the COVID- 19 having increased the cost of materials and forced the cessation of work for two months, work.
The commissioning of the anaerobic digestion center is scheduled for November 2022, in accordance with the initial schedule.
The City of Quebec is also investing in the development of active transportation, devoting $ 1.5 million to snow removal from the bicycle network. This will have to develop over the next few years, since the Merchant budget plans to devote an additional 2 million annually to it.