Quebec municipalities speaking out against vehicle registration tax [Video]

Municipalities are criticizing “prohibitive” administrative costs associated with the registration tax intended to finance public transport.

In December, the Quebec government passed a law allowing cities to tax vehicles according to their fuel consumption.

“Municipalities wishing to avail themselves of this power must enter into collection agreements with the Société d’assurance automobile du Québec (SAAQ). However, the administrative costs imposed by the SAAQ are prohibitive,” reads the news brief from the Quebec Union of Municipalities (UMQ).

UMQ president Martin Damphousse doesn’t understand the rationale behind these fees.

“It’s not working, so it’s clear that we’re going to have to readjust,” said the Varennes mayor.

According to Damphousse, it will be very difficult for small municipalities to make money with such fees.

“The implementation costs for MRCs and cities wanting to implement a registration tax in 2025 are $202,202,” the brief reads. “To this amount must be added an annual management …