Property taxes in Montreal are a hot topic among commercial and residential landowners. Property owners in Montreal are asking what they can expect with the upcoming 2020 tax hikes. Thankfully, recent announcements from Mayor Valérie Plante have given clarity on what property owners should anticipate in the near future. In this article, we will break down the essentials that you should expect to happen in the Montreal real estate market in 2020.
What to Expect from Montreal Property Taxes
If you live in a neighborhood with sharply rising property values, you should expect to see your taxes increase over this average. Boroughs including Outremont, Plateau Mont-Royal, the Sud-Ouest, Rosemont-Petite-Patrie, Notre-Dame-de-Grâce, and Côte-des-Neiges have all seen tax increases ranging from 13 to 17 percent.
In its 2019 budget, Montreal increased residential taxes by 1.7 percent. The city also increased commercial real estate taxes by 1.3 percent. That budget was seen as moving in a generally positive direction in contrast to the difficulties associated with the 2018 budget.
The administration has promised to work to correct imbalances between commercial and residential property taxes since these have harmed local businesses in the past. For example, last year’s budget contained provisions for helping Montreal’s merchants who had been harmed by construction projects.
The administration will also soon unveil its capital-works program for 2019-2021. This program will outline the city’s major projects, like sewers, water mains, roadwork, bike paths, parks, and supportive housing, over a three-year period. In general, these changes are seen as improvements over previous proposals that point the Montreal market in a more positive direction. They also show how seriously the administration is taking its investments in city infrastructure.
Effects of Rising Montreal Property Taxes
The Montreal real estate market has been increasing in total value recently. Real estate values increased by more than 13 percent on average. The mayor has promised that Montreal property taxes will only be increased by 2 percent for residential and 1.5 percent for commercial properties. This should dispel any fears some property owners may have of drastic Montreal property tax increases. The city has committed to keep increase averages small. The tax rate will also be adjusted downward in 2020 to keep rising real estate values from becoming an equivalent tax hike.
The city administration has also invested record funds into necessary repairs and upgrades to infrastructure. The city has reviewed its projects with an eye for prioritizing the most pressing needs, committing to keep infrastructure spending at $2 billion each year. These are all good signs of the overall health and vitality of the Montreal real estate market. Montreal should expect further growth and development as a result.