Image by Media_Breeze from Pixabay

Bill 22: Quebec municipalities call for more regulatory relief on double welcome tax

The Quebec Federation of Municipalities (FQM) and the Union of Municipalities (UMQ) called for further regulatory relief on the first day of consultations on Bill 22 on Wednesday.

They also rejected the government’s proposal to eliminate the “double welcome tax” for common-law partners in the event of a separation.

Currently, if a couple separates and one of the two people wishes to buy out the other’s share of the home more than a year later, they must pay real estate transfer taxes again.

Often, this second “welcome tax” is much higher than the first, as the municipality takes into account the increase in value of the purchased share.

Related:

Instead of eliminating the “double welcome tax,” the government could extend the deadline from 12 months to 5 years, the FQM and UMQ proposed on Wednesday.

They also rejected the proposal by former Minister of Municipal Affairs Geneviève Guilbault to extend the end of the “double welcome tax” to homes received as an inheritance.

“We mustn’t stretch the rubber band too far. We want to do our part, but we must recognize that for municipalities, this is a significant source of revenue,” said UMQ president and Mayor of Mascouche Guillaume Tremblay.

“I think that before moving forward with other measures, we need to do the math,” he added.

In addition, the FQM and the UMQ have called for the repeal of section 245.1 of the Land Use Planning and Development Act, which requires the issuance of individualized notices to citizens—a procedure they consider costly.

For example, the MRC des Pays-d’en-Haut estimates that approximately 18,000 properties would be affected by its interim control bylaw aimed at protecting wetlands and water bodies.

The costs associated with sending individualized notices by certified mail or through a bailiff are estimated at between $300,000 and $500,000.

“Once again, we’re adding a bit more administrative burden. (…) We find it inappropriate to keep this section of the law. We’re asking for it to be repealed,” said Michaël Pilote, first vice-president of the FQM and mayor of Baie-St-Paul.

Municipalities also want the government to limit the scope of the Charter of the French Language.

Under Section 152.1, a municipality may not enter into a contract with a business or grant it a subsidy if the business fails to meet its francization obligations.

Starting June 1, the measure would begin to apply to contracts of $5,000 or less.

“Every day, municipalities enter into a very large number of contracts, often for small amounts. (…) Applying the same requirements (…) to these low-value contracts is a huge burden,” Tremblay said.

“Dozens of full-time employees will be needed just to perform the language checks,” he argued.

He proposes limiting the scope of section 152.1 to contracts whose value exceeds the public tender threshold.

Municipal Affairs Minister Samuel Poulin committed on Wednesday to amending Bill 22. “There will be (amendments) that will address regulatory relief,” he assured.

–This report by La Presse Canadienne was translated by CityNews