Public transport financing | A significant increase in the registration tax studied

Greater Montreal plans to explode the tax on vehicle registration in order to bail out public transport, we have learned The Press.

Behind closed doors, the region’s mayors recently looked at scenarios where this annual contribution of $59 per vehicle could increase to $120, $180, or even $228 in Greater Montreal. This tax is directly collected by the Société de l’assurance automobile du Québec (SAAQ).

According to our information, mayors have said they are rather open to the idea of ​​substantially increasing this tax, including Valérie Plante. Others spoke out against the idea, including the mayor of Laval, Stéphane Boyer. Its residents and other suburban motorists only started paying this tax on 1^er January 2024: until then it only applied to the island of Montreal.

Friday, the office of Mayor Valérie Plante limited its options.

“Increasing the tax on vehicle registration is not an option desired by the City of Montreal nor is it a reduction in public transportation service,” said press secretary Catherine Cadotte.

“Everything depends on the financing proposal from the Ministry of Transport for Sustainable Mobility impatiently awaited by cities, transport companies and the population,” she continued.

In a written statement sent by his office, the mayor of Laval rejected the tax solution. “Two things are important to me. First, meet the minister. Time is running out,” he said. “Then, we must find a lasting and joint solution. If we don’t succeed, we will enter the vicious circle of reducing the service offering. For me, increasing taxes is really the last option. »

The office of the mayor of Longueuil did not issue a comment.

“Different possible scenarios”

This debate arises in a context of tensions between the municipal world and the Ministry of Transport.

For a second consecutive year since the start of the pandemic, Quebec announced its refusal to unconditionally fill the public transport deficit created by the drop in bus and metro ridership.

Last fall, negotiations dragged on until the eleventh hour, with Quebec finally agreeing to cover 70% of the bill. “It can no longer continue like this, we must manage public funds closely,” said Minister Geneviève Guilbault when granting the money.

It had also launched a series of audits on the various operators in order to find ways to save money and improve performance.

On Friday, his office did not want to comment on our information on the debates concerning the registration tax.

“We are currently studying the different possible scenarios to complete the financial framework for metropolitan public transport 2025,” responded the Montreal Metropolitan Community (CMM), through communications advisor Catherine Barbeau. “No decision has yet been taken, since we must first of all know the government’s contribution, which is essential and decisive for the future. »

An expanding tax

The tax on Montreal vehicle registration was created in 2011 to help finance public transportation. Each motorist on the island paid $45 per year per vehicle when renewing their registration.

“We can no longer finance investments [en transports en commun] by property taxes. If we want to carry out these projects as quickly as possible, we need a new source of income,” Gérald Tremblay said at the time. “Montrealers’ money will be used to improve the quality of services for Montrealers. »

At the time, the other mayors of Greater Montreal rejected the idea.

In 2020, suburban elected officials rallied behind it, but Quebec opposed it. ” It’s no. There will be no $50 tax for suburban motorists,” said François Bonnardel, Minister of Transport. After technical concerns, the SAAQ finally imposed the tax (increased to $59) from 1^er last January.