Most businesses will see a drop in taxes thanks to a change in how non-residential building owners are charged.
From the Vault: Nov. 8
“This budget will make a difference in the lives of our citizens today and for the generations to come,” Mayor Valérie Plante said as she unveiled Montreal’s $5.7-billion budget for 2019 on Thursday.
“It will also make a difference for our business owners, who are behind the vitality of our neighbourhoods.”
Montreal gets the bulk of its revenue — 68 per cent, or $3.9 billion — from property taxes.
In 2019, the average tax hike for residential properties will be 1.7 per cent, which matches Montreal’s projected inflation rate for next year.
In Montreal’s previous budget, covering 2018, the average hike for homeowners was 3.3 per cent, an increase for which Plante took heat because she had campaigned on a promise to raise taxes by no more than the rate of inflation (about two per cent at the time).
Here’s how the increases will affect the tax bills of typical residential properties in three categories:
The city of Montreal’s budget has an impact on the island’s suburbs, which share policing, firefighting, transit and other services with Montreal.
In 2019, Montreal’s 15 demerged suburbs will pay an average of two per cent more than last year for such services.
In previous years, the island’s 15 demerged cities had seen increases of about the inflation rate. But in 2018, on average, they had to pay 5.3 per cent more. Hardest hit at the time: Town of Mount Royal (9.8 per cent) and Montreal West (9 per cent).
With a population of 246,000, the 15 suburbs represent about 13 per cent of the 1.9 million people who live in the Montreal Island agglomeration.
The city is cutting by 10 per cent the amount of taxes paid on the first $500,000 of the assessed value of non-residential buildings, including those used for offices, retail and industry. The measure applies to buildings valued at less than $3 million.
Just under 60 per cent of Montreal’s non-residential buildings are valued at less than $500,000.
For a building valued at $450,000, the change will result in a $1,610 drop in taxes in 2019, the city says. For a $1-million building, the savings will be $1,439.
For buildings valued at between $3 million and $10 million, the average hike will be 0.8 per cent. Those valued at more than $10 million will see average hikes of 1.8 per cent.
With a $5.7 billion budget, Montreal will spend $233 million more in 2019 than it did in 2018, a 4.3-per-cent increase.
Four of out every 10 dollars the city collects — $2.2 billion — will be spent on salaries and benefits.
The biggest line items: public security (just over $1 billion, or 18 per cent of the budget), and debt servicing ($948 million, 17 per cent).
Montreal’s snow removal budget will rise by $3 million. In 2019, the city has budgeted $166.4 million. That’s 3 per cent of Montreal’s budget.
In addition to the budget, the city published its $6.5-billion capital-works plan for the next three years.
In 2018, about $440 million is going to repairing water mains and sewer pipes. Over the next three years, the city expects to spend $528 million per year on such work.
For both roadwork and water infrastructure, the planned annual expenditures amount to almost four times what the city was spending five years ago.
It has budgeted $60 million over three years for the purchase of natural environments. That $20 million per year is more than six times the amount the city has recently been spending annually to buy land for green spaces, said Luc Ferrandez, the executive committee member responsible for large parks.
London Mint League team were pennant winners in 1920 in the Michigan Ontario Class 'B' Professinals. The won 86 and lost 32 games. In the back to the left:
Pumps & Softeners Ltd., building at 680 Waterloo Street, formerly Ford Motor Co. assembly plant to house Siskind, Cromarty, IVey & Dowler law offices, 1990. (London Free Press files)