The property roll jumps by more than 32% on the island of Montreal

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The land roll jumps by more than 32% on the island of Montreal

The total value of buildings and land registered on the assessment rolls reaches $526.3 billion in the Montreal agglomeration.

The real estate boom of recent years has propelled the property assessment rolls in the Montreal agglomeration, where the value of properties has increased by an average of 32.4% compared to the value of the property rolls previous.

As for Montreal, property values ​​have increased by an average of 31.4% compared to previous roles, said the president of the executive committee responsible for finances, Dominique Ollivier, in a press briefing.

The new rolls presented in the morning by the assessor of the City of Montreal and director of the Property Assessment Service, Bernard Côté, will come into force as of January 1, 2023 and will serve as a basis for the property assessment and the setting of taxes for the next three fiscal years, 2023, 2024 and 2025.

According to the data presented this morning, the total value of buildings and land for the 502,789 assessment units listed on roles of the agglomeration of Montreal today reached 526.3 billion dollars, or 141.8 billion dollars more than in the previous roles, where it was established at 384.5 billion dollars.

This strong growth in property value stems, according to the City, from 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.

Being a homeowner in Montreal is more and more expensive, even if the value of buildings is in decline. sharp rise.

While such an increase in the value of properties in Montreal makes some people happy, it is far from good news for many other owners whose tax bills are calculated according to the value of their property and the land on which it is.

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

— Dominique Ollivier, President of the Executive Committee responsible for finance

Although the City has several tools to mitigate the impact of land value on the calculation of accounts taxes, increases are certainly to be expected for the majority of property owners in the Montreal agglomeration.

As with each new property roll, the City will have to adjust its tax rate downwards so that, ultimately, the tax bill of Montrealers is closer to previous years and that we can meet our commitment to not to exceed inflation, explained Dominique Ollivier.

However, with an inflation rate close to 8% last July, the municipal administration will have to be creative this year to contain the increase in tax bills within a reasonable range while facing it. -even the significant cost increases of the inflationary outbreak.

The City is also considering the possibility of spreading the property assessment increase over three years – as it has done for several years – to avoid too great a financial shock to owners and taxpayers.

It is during the tabling of the Plante administration's budget, at the end of November, that the tax measures, the tax rates and the variation in municipal taxes will be announced.< /p>

In its last budget, the City limited the tax increase on residential buildings to around 2% and 1.5% on non-residential buildings.

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

At the top of the list are industrial buildings that experienced the largest increase in their property value with an average appreciation of 60.5% in their value since the last property rolls from 2020 to 2022.

In the residential sector, this are buildings with five units or less that have seen the greatest increase with an average jump of 35.6% in their value.

Buildings with six or more units have seen their value increase by an average of 32.4% since the last assessment rolls from 2020 to 2022.

It goes without saying that the real estate value of buildings varies according to the boroughs in which they are located.

Overall, it is in Montreal East that land ownership has increased the most with an average increase of 52.5% in their estimated value, in particular due to the high presence of industrial buildings on its territory, specifies the City evaluator.

Next come the sectors of Senneville (+45.9%) and Dollard-des-Ormeaux (+45.1%) which complete the top three increases in property values.

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

In the City of Montreal as such, the boroughs of Lachine (+42.6%), Pierrefonds-Roxboro (+40.8%) and Saint-Laurent (+39%) experienced the strongest increases in their property rolls.

Most Montreal boroughs posted increases of between 30% and 35%, except Ville-Marie (+15.7%), due to the high proportion of commercial and office buildings concentrated on its territory and which have been strongly affected by the containment measures imposed during the pandemic and the development of teleworking which have reduced traffic in the city center.

With regard to the financial burden that Montreal taxpayers are currently bearing, the head of finance on the executive committee believes that it is becoming urgent to vary the City's sources of revenue in anticipation of the major challenges that await it in the future. #x27;future.

“Currently, the budget of the City of Montreal is financed at a little more than 60% by the property tax, and that, in the face of the enormous challenges that we have, it is sure that it is unsustainable. »

— Dominique Ollivier, President of the Executive Committee responsible for finance

We must absolutely find alternatives to the property tax to ensure adequate, stable and recurring funding for municipal services which does not pass the bill on to future generations either, pleaded Ms. Ollivier.

Relying on the property tax to this extent is a financial risk that must be remedied because otherwise it means that the bill for everything we have to do these days becomes the burden of Montrealers.

Earlier this week, the outgoing Prime Minister , François Legault, did not respond to the request of the mayoress of Montreal and the mayors of the big cities of Quebec, who are calling for a “green pact” of two billion dollars to help them finance the adaptations that must be put in place. in place in anticipation of climate change.

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