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The 2019 tax agreement between the provincial government and Quebec municipalities will soon be expiring. URBA, the Union des municipalités du Québec’s magazine asked Nicolas Plante, Management Consulting Partner, to shed some light on the situation and its impact on Quebec municipalities.
“A very large proportion of municipal income comes from property taxes, which places a considerable burden on residents. If you go back a few years, you’ll realize that municipal services have changed considerably. Before these services were limited to garbage removal, road maintenance, snow removal, etc. Today, they can include a cultural offering, mass transit, leisure activities and much more,” Nicolas Plante explained.
Beyond the growing reliance on property taxes, the shift to online retail sales also impacts municipalities significantly.
“E-commerce has extensive repercussions on municipal income, which depends extensively on new retail business and industrial tax income. The digital economy does not need new premises, leaving municipalities with a major challenge in terms of revenue sources,” Nicolas Plante added.
To read the full article on the tax agreement, consult the online version of URBA (page 14).