Gatineau to introduce parking lot tax in 2025, projecting $27 million revenue boost

Sophie Demers 

Gatineau’s budget week brought about many new initiatives by the city, one of which is the plan to implement parking lot taxes, starting in 2025. The city administration studied 32 different taxation scenarios before choosing the one best suited for the city. 

In 2024, a parking lot tax was applied to parking lot operators and office buildings in Gatineau. In 2025, this will extend to all non-residential buildings in the city. This new tax is projected to generate an estimated $27 million for the city. 

The objectives for the parking lot tax include diversifying city revenue to meet the city’s growing responsibilities, addressing environmental issues such as encouraging public transit, and reducing greenhouse gases. Other objectives include reducing asphalt and concrete surfaces that create heat islands, increasing urban densification, development of green spaces, and land optimization. 

Gatineau had a third-party organization, AppEco, do an economic study of their revenue diversification measures. AppEco provided three conclusions: the tax must be high enough to change user behaviour; it must provide an incentive to transform the parking lot into more productive spaces; and that even doubling the current rates would have little to no impact on business competitiveness. 

The executive committee recommended a progressive rate with a 650 m2 credit. This is equivalent to 22 parking spaces. This 650 m2 credit safeguards most small businesses from the tax. However, this credit would not apply to parking lot operators.

“I want to note the importance of the fact that 60% of the cases are without financial impact,” said Steve Moran, president of the executive committee, and Hull-Wright councillor. “80% of impacted businesses will see less than 10% increase on their tax bill. And I also insist on the strata, the progress of the measure; that is to say, that small businesses are eliminated. The more we grow, the more we have a parking lot area, the more we will be taxed. This is a very important element in encouraging developers to incorporate less parking spaces  and encouraging public and active transit.” 

Four areas will be excluded from the tax, a section of Old Aylmer, the Buckingham urban core, two sections of Gatineau, specifically Notre-Dame and the Masson-Angers revitalization area. The parking lot tax will be 25% higher for buildings in city centers as detailed in city documents. The city states that these areas are aimed at making the city more compact, user-friendly, allowing for quality living environments with an efficient public transit system. For example, the downtown core. 

“We have to find a way to at least benefit the services to the affected businesses after imposing this tax. That's why I proposed, during an executive committee meeting, to offer things to these commercial zones,” said Point-Gatineau councillor Mike Duggan. “For example, to help with zoning plans for their redevelopment, revitalization, densification. And it was added to the recommendations, so I'm happy to see it.” 

Buckingham councillor and executive committee member, Edmond Leclerc also weighed in, stating, “I think we have a regulation that allows us to target our objectives, and I think we included the concerns and demands of our business owners, and I thank them for participating.