Montreal

No tax hikes above inflation, says Plante as city prepares budget

"What we hope, is that business owners will not find the same surprises as last year," said Billy Walsh, CEO of Promenade Wellington in Verdun.

Mayor says budget priorities are mobility, housing and supporting local businesses

Mayor Valérie Plante greets Montrealers in Bonaventure Metro to mark one year since her win. (CBC Montreal)

Montreal Mayor Valérie Plante says mobility, housing and supporting local businesses are the priorities as her administration is set to present its second budget this week.

Calling the first budget a "transition budget," she says taxes will not rise above the rate of inflation this time.

After raising non-residential property taxes by three per cent and water taxes for homeowners by 1.1 per cent last year, she said there will be no unpleasant surprises.

Plante marked the one-year anniversary of her win by greeting commuters at Bonaventure Metro. She says she still takes the Metro, though not as often as she used to.

Plante says some tough decisions had to be made in her administration's first budget, but that this time there will be no unpleasant surprises. (CBC Montreal)

The budget will contain previously announced funding for an office to manage the Pink line project, as well as funding for merchants and housing — all issues the Projet Montréal party has long championed, she said.

Last year, Plante ordered a report by Mouvement Desjardins president Guy Cormier on how to help Montreal businesses. That report, released in June, recommended a reduction in taxes for the first $500,000 when evaluating non-residential property.

Robert Beaudry, who manages economic development on Montreal's executive committee, acknowledges a disparity in the property taxes paid by large businesses in malls compared to smaller storefronts.

"There is a lack of fairness at that level," he said. "We must work on it."

Promenade Wellington CEO Billy Walsh says business owners have mostly gotten over the shock of last year's tax increases, but hopes there are no surprises in the Plante administration's second budget. (Benoît Chapdelaine/Radio-Canada)

In April, Plante announced a $360-million investment over five years, with $150 million coming from the province of Quebec, to "accelerate the economic development" of Montreal.

Billy Walsh, CEO of Promenade Wellington in Verdun, says things have stabilized after the initial shock of last year's tax hike.

"The hemorrhage​ is more or less over," he said.

With files from Radio-Canada