Let’s talk about non-residential property taxes in Quebec.
But first, we should ask ourselves the following question: is it expensive to do business in Quebec?
This is the fundamental question when looking for prosperity and decently paid jobs in a city.
The City of Quebec wanted to measure, on a factual basis, what it is. To answer it, it enlisted the services of an independent external firm, KPMG, to carry out a comparative study of the costs which are sensitive to the location of companies not only in Quebec, but elsewhere in Canada.
To do this, 15 Canadian cities, including the five largest cities in Quebec, were analyzed, under 10 different business profiles ranging from family restaurants to technology companies.
Good position for Quebec
It shows that Quebec is positioned very well. Quebec ranks 1st among Quebec cities and 4th among Canadian cities where it costs the least to establish and operate a business. Quebec has location-sensitive operating costs that are more competitive than the average for all the cities studied.
There is reason to be very proud of these results!
And it’s important to know these costs when you want to attract businesses and businesses here, or to reassure those who already exist there. This study is an incomparable tool for the City and the regional economic promotion organizations. We must know how to be equipped to compete to attract the best organizations that correspond to our economic and social objectives.
Taxation
Taxes now! It should be noted that (municipal) property taxes are part of a set of tax charges imposed on companies (charges related to labor, income tax and property tax). In Quebec City, property taxes represent on average 5.3% of the total location-sensitive costs for all the business profiles analyzed.
Compared to the average for other large cities in Quebec, the weight of property taxes in relation to the total location-sensitive costs is comparable (5.3% vs. 5.1%). Overall, for all location-sensitive costs, however, it should not be forgotten that Quebec City remains the cheapest among Quebec’s large cities.
Also, still in terms of property taxation, Quebec is below the Canadian average for the following business profiles: local businesses, medium-sized businesses, family restaurants and gourmet pubs. Clearly, it costs less in municipal taxes in Quebec than for the average of all local businesses, that is, the businesses most used by the population of Quebec.
Another interesting statistic: for pubs, restaurants and local businesses, property taxes correspond respectively to 1.7%, 2.5% and 3.3% of the total location-sensitive costs, i.e. a small share of the cost. all costs. Here we can dispel a myth, because these figures do not correspond to the prevailing discourse implying that these businesses are closing because of the bill of too high municipal taxes.
However, the City was leaving from afar. In 2008, non-residential taxes were expensive in Quebec. A boost has been given by my administration. Cumulatively, since 2008, non-residential taxes have increased less than the increase in wealth creation (gross domestic product). Also, still since 2008, non-residential taxes have increased cumulatively by 9% less in Quebec than in other large cities in Quebec. All of this has made it possible to become more competitive in this area.
Pride
That said, we must not forget that Quebec is a heritage, tourist, technological and safe city that can hardly be compared, for example, with Winnipeg, Saskatoon or Hamilton (participating cities of the KPMG study). And remember, these elements, which are the pride of Quebec, have a cost for a municipal administration.
Quebec is the 2nd most populous city in Quebec and it should compare to the largest city in Quebec, Montreal. Quebec can also be compared with another city that looks like it, a government, technological and tourist city, namely Ottawa. In terms of comparisons, Toronto could also be included.
In these three cases, property taxes are much higher there than in Quebec! More specifically, the average charges related to property tax for the ten business profiles studied are higher than in Quebec by 34% in Montreal, 31% in Ottawa and 50% in Toronto.
A successful city
In terms of municipal management costs, according to the data in the financial reports of municipalities from the Ministry of Municipal Affairs and Housing, among the five largest cities in Quebec, it is in Quebec that the costs of general administration are the lowest. The portion of spending devoted to general administration is 17% higher in other large cities than in Quebec. For Montreal, the share of general administration costs is 41% higher than in Quebec.
In closing, remember that:
- Between 2008 and 2021, the cumulative increase in residential taxes in Quebec is 77% lower than that of other large cities in Quebec;
- There are fewer employees in the City than when we arrived, even though expenses, and revenues before surpluses, have increased by 47% since 2008. Employee productivity has also increased by 64% since then. time;
- We are paying more and more cash for our investments, we are living less and less on the credit card. The cash payment for fixed assets increased from $ 2 million in 2007 to $ 144 million in 2020;
- The City’s net debt has been declining for the past five years;
- When we arrived 14 years ago, Quebec was the 3rd most indebted city of the 10 largest cities in Quebec. Today, we have become the 3rd LESS indebted city;
- The resale price of the average single-family home between January and June 2021 is 68% higher in Montreal than in Quebec;
- Citizen satisfaction with the services offered by their city has stood at 89% for three quarters.
This is a most enviable overall portrait!
But above all, it is a city with a bright future.
As I promised 14 years ago, and in addition with the upcoming tramway, Quebec will become nothing less than the most attractive city in the country!
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