$90 vehicle registration tax to hit motorists in two installments

Taylor Clark

The Ville de Gatineau and the Société de transport de l’Outaouais have reached a compromise on the registration tax on passenger vehicles which has caused public outcry since being introduced by former mayor France Bélisle in late February.

While the Société de transport de l’Outaouais wanted to see a $90 increase, the municipal council lowered the hike to $60 for 2025 but expected to boost the tax again the following year by $30. The $60 increase would absorb the Société de transport de l’Outaouais’ structural deficit but leave users without improvements to service until 2026.

The registration tax will be the same for all types of vehicles and apply to each vehicle registered in Quebec.

“I think we will ultimately be proud of this measure. Of course, going to see citizens and saying that there is going to be an additional tax on cars is not fun,” municipal council president Steven Boivin told reporters during a press briefing on April 16. “But to say that we are going to put it on property tax is not better. We won’t come out ahead with this argument.”

The power to tax vehicle registration came after Quebec passed Bill 39 in 2023, which granted municipalities new abilities to diversify its revenue sources. This allowed municipalities and regional county municipalities to impose a tax on vehicle registration based on fuel consumption.

“For me, it is essential that the City takes its responsibilities with the new tool and absorbs this deficit,” said acting mayor Daniel Champagne. “It's a bit of a poisoned gift that the province gave us, but unfortunately, that's what happened.”

Owners of passenger vehicles in Gatineau have been required to pay an annual public transit contribution since 1992. The contribution was $30 per year. The Société de transport de l’Outaouais originally proposed a $90 on top of the $30 to cover its structural deficit and improve its services.

“Public transport, as we say, is collective transport,” said Patrick Leclerc, general director of the Société de transport de l’Outaouais. “It’s for the benefit of the entire community. We don’t ask the same question about education for people who don’t have children, for example. The health system, if you are not sick, you still contribute to it. It’s a collective benefit.”

While some councillors like Mario Aubé rejected the tax altogether, Boivin said he was ready to implement the whole $90 hike.

“I think that what we are doing here is somewhat achieving the objective. That is to say, we believe in public transportation, but not too quickly.… What I’m happy with at the moment is that the message we’re sending is that we believe in public transportation and that we want to offer better service,” said Boivin.

In the meantime, Gatineau’s acting mayor said the City would look at alternatives over the coming weeks and months to see what can be done to raise the necessary amounts to enhance services.

Photo caption: While the vehicle registration tax was lowered to $60 in its first installment, municipal council president Steven Boivin says he was ready to implement the whole $90 increase to improve the Société de transport de l’Outaouais’ services.

Photo credit: Screenshot from press conference on April 16, 2024 – Plenary Committee – Vehicle Registration Tax