Achi news desk-
The municipalities are criticizing the “incarcerated” administrative costs associated with the registration tax intended to finance public transportation.
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 authority 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 Union of Municipalities of Quebec (UMQ) news brief.
UMQ president Martin Dempsey doesn’t understand the logic behind these fees.
“It’s not working, so obviously we’ll have to readjust,” said Warren’s mayor.
According to Demfus, it will be very difficult for small municipalities to make money with such fees.
“Implementation costs for MRCs and cities that want to implement a registration tax in 2025 are $202,202,” the brief states. “To this amount must be added an annual management fee of 2 percent of the taxes collected, with a floor amount of $60,000. A very large percentage of the revenue generated by a possible tax will be paid in management costs, which reduces the real potential of this tool, which must be able to be used anywhere in Quebec.”
This report by The Canadian Press was first published in French on April 30, 2024.
