Montreal has had enough of tax hikes! This is the message that protesters brought to Point-Claire City Hall on Sunday afternoon. Mayor Valerie Plante can dress up the hikes as she wants but the Mille rate is about to change and it will have an impact greater than what you might think. Some of the largest hit are the demerged municipalities.
The increases to shared municipalities are as follows…
- Town of Mount Royal: 9.8%
- Montreal West: 9%
- Dorval Island: 7.1%
- Westmount: 6.7%
- Pointe Claire: 6.3%
- Baie D’Urfé: 5.7%
- Dollard-des-Ormeaux: 5.3%
- Beaconsfield: 5.2%
- Dorval: 4.2%
- Hampstead: 4%
- Senneville: 3.6%
- Côte Saint-Luc: 3.5%
- Montreal East: 3.2%
- Kirkland: 2.8%
- Sainte-Anne-de-Bellevue: 7.4%
The Mille rate is what is used to calculate the amount of your taxes, it is the multiplier or the rate. The tax base is based on comparables that are sold in your neighborhood. Currently, we are on a three-year system 2016-2019. As of next year, we will be seeing the tax base increase as well. This will have a major impact on peoples tax bills. Already, properties in certain municipalities are astronomical.
The other impact that this will have is on those who were looking to get pre-approved for mortgages. If you were pre-approved last year, or even at the beginning of this year, you will see your buying power be reduced by $5,000 to $10,000 depending on the areas that you are looking to buy.
This week during The Real Estate Show we had Mayor Alan DeSousa from Ville St. Laurent with us to discuss what the new budget means and how it will impact Montrealers.
In a statement, Benoit Dorais, executive committee chair, defended the increases, stating that they are caused by “new collective agreements for police and firefighters, higher pension costs, as well as increased funding of public transit and water services.”
The 2018 budget is up from previous years by 5.2% to a total of $5.47Billion. The full breakdown is as follows.
The best advice I can give to homeowners is to buckle down and analyze how money is being distributed in the household finances. It is important now more than ever to have a proper plan that looks at all the elements of your finances. Things are about to get more expensive. Question is how will you react to the change?
My advice to the city of Montreal and to Valerie Plante: If you want to have more money for your budget, bring more money into the city! Increase jobs and decrease public spending. It is time to put politics aside and make Montreal into the booming metropolis that it should be. Enough with tax hikes!
Thank you for reading.