An increase in municipal taxes of “maximum” 3%, claims the CCMM
Michel Leblanc, President and CEO of the Chamber of Commerce of Metropolitan Montreal
In a brief concerning the budget of the City of Montreal, the Board of Trade of Metropolitan Montreal (CCMM) invites the Plante-Ollivier administration to limit to a maximum of 3% the increase in the tax bill for 2023. A measure much stricter than the promise to limit itself to the rise in inflation.
In his memoir entitled Budget de la ville de Montréal – Adopting a rigorous approach to financial management and banking on agility to support the prosperity of the metropolis, the CCMM alerts the City to an increase in inflation which “worries businesses and citizens”. The latter would thus fear, according to the CCMM, to see the municipal taxes increased.
The CCMM therefore proposes that the City smooth out the required tax increase over the next three years in order to keep up with inflation. She also wants a reduction in the gap between residential and non-residential property taxes.
A double-edged electoral promise
During the municipal elections last fall, Mayor Valérie Plante promised to limit the increase in municipal taxes to the level of inflation. However, inflation at that time was at the usual level of around 2%. It is now approaching 7%.
In theory, the Plante-Ollivier administration could therefore impose a record tax increase without breaking its electoral promise. However, the Chamber of Commerce of Metropolitan Montreal implores him not to follow this path.
The rise in inflation in the country is of great concern to businesses and citizens of the metropolis, who fear a sharp increase in municipal taxes. […] Montreal businesses are those that already pay the most commercial property taxes in Canada.
Michel Leblanc, President and CEO of the CCMM
Cut certain expenses < /h3>
To limit the increase in municipal taxes, the CCMM wants the City to focus its spending on services to citizens and businesses.
“The City must stop the increase in spending. Once again, we encourage the City of Montreal to reduce its spending in areas of activity that fall under the responsibility of other levels of government,” said Mr. Leblanc.
The CCMM is also asking the Plante administration to exclude technological equipment from the property assessment roll. According to the Chamber, such a measure could “directly harm the competitiveness” of Montreal businesses.
“No other administration of a Canadian metropolis has chosen to go in this direction. This approach is counter-productive!” reads the CCMM press release.
“A great reflection on Montreal taxation”
In response to the CCMM report, the City of Montreal claims to be “recognized for its sound and responsible management of its public finances”. And this, without “leaving aside the needs and priorities” of the citizens.
“Obviously the inflationary context worries us. This is why we are of the opinion that the City must diversify its revenues, which are mainly based on property taxes,” replied the president of the executive committee of the City of Montreal, Dominique Ollivier, in an exchange with Métro. .
In the coming days, the City should unveil the details of a “major reflection on Montreal taxation”.
“It’s a major project that we will lead with the objective of finding concrete solutions to ensure adequate, stable and recurring funding for municipal services, without passing the bill on to future generations”, explains Dominique Oliver.
Ms Ollivier did not want to comment on limiting the tax increase to a maximum of 3% as requested by the CCMM.