Valerie Plante’ sent out her first tax bills this week, detailing exactly how the new Budget 2018 will affect residential property taxes.
The government has increased its budget by 5.2% to $5.4 billion, which includes a $24.7-million increase (2.9 per cent) to the boroughs. The details of the budget have created some controversy, since they contradict Plante’s campaign promise to keep tax increases in line with inflation.
Here are some key points:
- Residential taxes will increase by 1.9%
- Commercial and industrial property taxes are now 2.1% higher (3% up from 0.9% in 2016 and 2017 under Coderre.)
- The water tax will increase by 1.1% for residential properties and 0.8% for commercial properties. This is the first time the city has increased its water tax since 2013.
- The average residential homeowner will absorb a tax increase of 3.3% on their property, which takes into account the municipal tax bill based on general tax, borough tax and special taxes including water services. Of these, the general tax accounted for the biggest portion of the tax bill – a 1.9% increase.
The budget also outlined how the tax hike will vary based on the borough in which the property is located. LaSalle saw the smallest tax increase (0.7%) while Rosemont – Le Petite Patrie saw the highest at 5.6%.Furthermore, some neighborhoods within a borough will receive higher tax increases than others.
When it comes to the water tax, the 1.1% increase only refers to the impact of the new water bill on municipal taxes. According to the Montreal Gazette, Montrealers will in reality pay 7.4% more on their water tax.
Lastly, increased housing prices will also impact each homeowner’s tax burden. The average Montreal home appreciated by 6.2% in 2017.
Taxes will bring in 69% of the city’s $5.4 billion budget for 2018. Plante defends the tax hike to meet Montreal’s general needs and repair the city’s water supply infrastructure.
On the bright side, Plante has also announced a plan to offer a discount on the welcome tax for families buying their first home.