The significant increases in property taxes included in the City of Montreal’s latest budget are worrying both tenants and owners, who will both see the financial burden on their shoulders increase. The business community is relieved.
“It’s really worrying,” launched Tuesday the president of the Association of Quebec owners, Martin Messier, in response to the average increase of 4.1% in property taxes in the residential environment included in the budget. It exceeds 5% in some boroughs, including Mercier–Hochelaga-Maisonneuve and Côte-des-Neiges–Notre-Dame-de-Grâce.
“Our recommendation is that as far as possible, we will raise the rents. But in cases where this is not possible, it is the owner who will have to absorb”, adds Mr. Messier, who finds “questionable” these increases in tax charges which, he insists, will have “an impact directly on tenants. “I don’t see how you can ask landlords to raise rents less than what cities are raising. For me, there is a mismatch between that, ”he argues.
Worried tenants
Several tenants met by The duty Tuesday also say they are worried about the repercussions that this new City budget could have on their monthly rent. “It is the most disadvantaged people and the students who will suffer the most,” apprehends Rosa Barrera, a doctoral student who already allocates more than 50% of her income to housing in Mercier–Hochelaga-Maisonneuve.
Réal Daoust, a retiree who lives in Rosemont–La Petite-Patrie, must also reserve half of his “old age pension” for his monthly rent. However, “the finances, as you age, are much lower, you calculate more”, notes the tenant. In this context, even “small increases” in rent can “be difficult to collect”, he adds.
The spokesperson for the Regroupement des Comités Logement et Associations de Tenants du Québec, Martin Blanchard, is concerned about the City’s decision to provide significantly more funds in its Ten-Year Capital Assets Plan for the acquisition of land in for affordable housing purposes rather than for the creation of social housing. However, these are the ones that are really affordable for the less well-off, he argues.
“People with low incomes will gather on the outskirts of the city of Montreal because we will not have provided enough spaces for social housing,” apprehends Mr. Blanchard.
The business community relieved
“It’s a good budget under the circumstances,” summarizes Michel Leblanc, CEO of the Board of Trade of Metropolitan Montreal. “Businesses are dealing with rising bills on all sides, so the City’s decision to raise property taxes for the non-residential sector to 2.9% is a sign that it has listened to our demands” , he believes.
In addition to increases in property taxes, Montreal businesses will also have to juggle with new eco-taxation measures introduced in the budget.
On the one hand, Montreal will extend the tax on parking to the entire territory of the City. This tax, which was limited to the city center until now, will target all non-residential outdoor parking lots over 20,000 m2.
On the other hand, the City will also begin to charge drinking water to industries, businesses and institutions, based on their consumption. A blank invoice would be sent to them at the end of next January, which will allow them to know the amount that will be claimed from them in 2024.
“We support the water pricing measure. We think it’s totally appropriate in a context of ecological transition,” underlines Mr. Leblanc. However, he is more nuanced regarding the new pricing for car parks. “We support the concept. That said, we would have preferred that the City go there with a coordinated strategy with Laval and Longueuil, so as not to discourage businesses from setting up in Montreal,” he explains.
With Jeanne Corriveau