The issue of funding public transportation is a hot topic in many big cities, including Montreal. The provincial government has pledged to provide $200 million in 2025 to help with funding, but this falls short of covering all the accumulated deficits. The promised assistance is actually less than what was provided in 2024.
To make up for the shortfall, the city has decided to increase taxes. A resolution was passed yesterday during a meeting of the Greater Montreal Metropolitan Community (CMM) to raise the vehicle registration tax by approximately 150%, from $59 to $150.
Valérie Plante, the Mayor of Montreal and President of the CMM, stated that this change was necessary due to a lack of funding from other sources. According to the CMM, the contributions from municipalities and public transit users have reached their limit, while the vehicle registration tax for drivers has not been raised since 2011.
Various solutions were considered before settling on the tax increase, including raising transit fares, increasing the gasoline tax, raising vehicle registration fees, implementing a mileage tax, or raising municipal taxes.
In opposition to the decision, Aref Salem, leader of Ensemble Montréal, believes that the move is hasty and premature, especially since negotiations are still ongoing with authorities. He acknowledges that drivers should contribute more to public transportation, just as users do by paying higher fares. However, he points out that residents in outlying neighborhoods have few alternatives to using their cars, and this steep increase penalizes those who have no other choice but to rely on their vehicles.
It is clear that the debate over how to fund public transportation in Montreal is far from over, as different stakeholders continue to voice their opinions and concerns. The decision to raise the vehicle registration tax is just one step in the ongoing effort to ensure sustainable and accessible public transit for all residents of the city.