On the island of Montreal, the real estate rate increases by more than 32%

% par rapport aux rôles précédents”,”text”:”Quant à Montréal, la valeur des propriétés a grimpé en moyenne de 31,4% par rapport aux rôles précédents”}}”>In Montreal, real estate values ​​are up an average of 31.4% compared to previous rolesFinance Executive Committee President Dominique Ollivier said at a press conference.

The new lists, unveiled this morning by City of Montreal appraiser and Director of the Property Assessment Service, Bernard Côté, go into effect on June 1ah January 2023 and serves as the basis for real estate valuation and tax assessment for the next three financial years, i.e. 2023, 2024 and 2025.

According to data presented this morning, the total value of the buildings and land of the 502,789 appraisal units listed today in the Montreal Metropolitan Area lists reached $526.3 billion, or $141.8 billion more than in previous roles, where it was $384.5 billion.

According to the city, this strong growth in property value is due to this the combined effect of the addition of new buildings or improvements to existing buildings and market valuation between July 1, 2018 and July 1, 2021.

increase in the tax burden

Real estate in Montreal is becoming more and more expensive, even as the value of the buildings increases significantly.

Photo: iStock/BalkanCat

While such appreciation in the value of Montreal real estate makes some people happy, it’s far from good news for many other owners whose tax bills are calculated based on the value of their property and the land they’re on.

Let me reassure you right away, a 32% increase in real estate value of buildings certainly does not mean that property taxes will increase by 32%. »

A quote from Dominique Ollivier, President of the Executive Committee responsible for Finance

Although the city has several tools to mitigate the impact of property value on calculating tax bills, increases are certainly in store for the majority of homeowners in the greater Montréal area.

As with any new real estate role, the city must adjust its tax rate downward so that Montrealers’ tax burden is ultimately closer to previous years and we can meet our commitment to not exceeding inflationexplained Dominique Ollivier.

However, with inflation hovering near 8% last July, local government will need to be creative this year to keep tax bill growth within reason while managing cost increases themselves. important parts of the inflation push.

The city is also considering the possibility of spreading the property valuation increase — as it has been doing for several years — over three years to avoid too big a financial shock to owners and taxpayers.

During the preparation of the Plante administration’s budget at the end of November, the tax measures, the tax rates and the change in municipal taxes will be announced.

In its most recent budget, the city limited the tax increase to about 2% for residential buildings and 1.5% for non-residential buildings.

Dramatic increase in the value of industrial buildings

Lantic Sugar Factory in Montreal.

The value of industrial buildings on the island of Montreal has increased by an average of 60% compared to previous appraisal rolls.

Photo: Radio Canada / GOOGLE STREET VIEW

At the top of the list, industrial buildings have seen the largest increase in their property value with an average increase in value of 60.5% since the last property appraisals from 2020 to 2022.

In the residential sector, buildings with five units or fewer saw the largest increase, with an average increase in value of 35.6%.

Buildings with six or more units have experienced an average increase in value of 32.4% since the last survey rounds from 2020 to 2022.

It goes without saying that the real estate value of buildings varies depending on the district in which they are located.

Overall, land ownership in Montreal-East has increased the most, with an average increase of 52.5% of its estimated value, in particular due to the high presence of industrial buildings on its territory, specifies the city’s appraiser.

Then come the Senneville (+45.9%) and Dollard-des-Ormeaux (+45.1%) sectors, completing the top three property value increases.

The Montreal West, Ste-Anne-de-Bellevue and Baie-d’Urfé sectors all posted gains of over 40%.

As such, within the city of Montreal, Lachine (+42.6%), Pierrefonds-Roxboro (+40.8%) and Saint-Laurent (+39%) counties saw the largest increases in their land registries.

Most of Montreal’s districts recorded increases of between 30% and 35%, with the exception of Ville-Marie (+15.7%) due to the high percentage of commercial and office buildings concentrated on their territory and which were heavily influenced by the developments during the Pandemic and containment measures imposed by the pandemic Development of telework, which has reduced traffic in the city center.

Diversify sources of income

In view of the current financial burden on Montreal’s taxpayers, the Executive Committee’s chief financial officer believes there is an urgent need to diversify the city’s revenue streams in anticipation of the grand challenges ahead.

Currently, just over 60% of the City of Montreal’s budget comes from property taxes, and that’s certainly unsustainable given the tremendous challenges we face. »

A quote from Dominique Ollivier, President of the Executive Committee responsible for Finance

It is imperative that we find alternatives to property taxes to ensure adequate, stable and recurring funding for municipal services that also does not pass the bill to future generations.pleaded Mrs. Ollivier.

Being subject to property taxes on this scale is a financial risk that we need to address because otherwise it means the bill for everything we have to do these days is borne by Montrealers.

Earlier this week, outgoing Prime Minister François Legault failed to meet a request from the mayor of Montreal and the mayors of Quebec’s major cities, who are calling for a $2 billion “green pact” to help fund adjustments needed to be made in anticipation of climate change .

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