Yesterday, Mayor Valérie Plante and her team unveiled Montreal’s budget for 2018, and both renters and homeowners aren’t exactly happy.
As part of the budget, property taxes in Montreal are going up by an average of 3.3$, forcing homeowners to fork out more money for their property.
Renters will likely feel the squeeze, too, as landlords will be forced to carry over the tax hike into rent prices, especially in boroughs where the property tax is increasing by a larger margin.
For example, in Rosemont—La Petite-Patrie, the property tax is increasing by 5.6%, the highest in Montreal. Now landlords in the borough are worried they will lose tenants because of the necessary rent increase.
"I already had tenants leave because they were tired of [rent] increases. I do not want it to happen again, " Stéphane Arcand, the landlord of an apartment building on Saint-Michel told TVA.
Other boroughs that will experience higher-than-average property tax increases (and probably rent hikes, as a result) include Villeray–Saint-Michel–Parc-Extension (5.4%), Outremont (4.5%), and Côte-des-Neiges—Notre-Dame-de-Grâce (4.2%).
Montrealers won’t only be paying more for homes and apartments thanks to the Plante administration’s budget. Water is also going to be pricier.
In order to fund improvements to existing water-infrastructure, says the Plante administration, the Montreal water tax is rising by 1.1%. This is the first time the water tax has been increased since 2013.
During her election, Plante promised taxes would not be increased past the point of inflation. Given the figures presented in the new budget, that obviously isn’t the case. People are already pissed off and see this as a broken promise on Plante’s part.
Defending her administration’s decisions, Plante said that it “may be surprising” for the general public to when looking at the budget’s tax increases. But Plante maintains her administration “didn’t break any promises,” reports The Gazette.
Plante also described the 2018 budget as a “transition budget,” as her administration had to deal with problems left over from the Coderre team, like a surprise $358-million deficit.
Plante also said the budget will give Montreal the chance to reverse “decades of under-investment in our infrastructure and our road and public transportation networks."
In total, Montreal’s 2018 budget amounts to $5.47 billion, an increase of 5.2% from last year.