Public transit funding has been a chronic, hot-button issue in major cities for years. In Montreal, a debate has been raging for some time on how to pay for providing this necessary service.
Quebec’s provincial government has committed to providing $200 million in 2025, but says it won’t absorb all the accumulated deficits. The promised funding aid is less than it was in 2024.
The city has found another source of revenue: raising taxes. Yesterday, a resolution to increase the registration tax was passed at a meeting of the Communauté métropolitaine de Montréal (CMM).
The tax will rise by around 150 percent, from $59 to $150.
Montreal mayor Valérie Plante, who is president of the CMM, said it had no choice given the shortfall of of funding from other resources.
According to the CMM, contributions from municipalities and public transit users have reached their maximum, while the vehicle registration tax paid by owners has not increased since 2011.
Various solutions had previously been considered, including increasing fares, raising the gas tax, increasing vehicle registration fees and vehicle registration taxes, raising municipal taxes or creating a mileage tax.
Aref Salem, leader of opposition party Ensemble Montréal, stated that the action is quick and premature, especially as negotiations are still underway with the authorities.
“Motorists must of course contribute more to public transit, just as users do by increasing their fares. However, we must not forget that residents of outer boroughs currently have very few alternatives for getting rid of their cars. This draconian increase punishes motorists who have no other choice in terms of public transport.”