In 2011, a tax on passenger vehicle registrations was introduced in the Montreal agglomeration to fund public transit. Since January 1, 2024, this $59 tax has also applied to municipalities within the Montreal Metropolitan Community (CMM) and the City of Saint-Jérôme. According to the ARTM, in 2024, it generated additional revenue of $122 million. Starting January 1, 2025, the amount of this tax increased to $150, adding to the provincial contribution of $30 for public transit, bringing the total to $180 per vehicle in addition to other fees for vehicle registration.

The city of Saint-Lazare is part of the Montreal Metropolitan Community (CMM).

Increase in the Vehicle Registration Tax in 2025

The Quebec government holds ultimate power over public transit and delegates certain responsibilities to regional bodies. The Autorité régionale de transport métropolitain (ARTM) is responsible for planning, financing, and managing transportation services in the metropolitan area. It administers funds from member municipalities and the provincial government to maintain and develop services.

The Montreal Metropolitan Community (CMM), which includes 82 municipalities, makes strategic decisions influencing public transit funding. However, it does not directly manage service operations; this task is entrusted to the ARTM. Exo is the public transit authority responsible for operating commuter trains, buses, and paratransit services across the Greater Montreal area.

The city of Saint-Lazare is part of the South-Shore. The voting system within the CMM favors Montreal and large municipalities, reducing the influence of the 40 municipalities on the South-Shore.

The Autorité régionale de transport métropolitain (ARTM) and the Montreal Metropolitan Community (CMM) are creations of the Quebec government. 

At the special CMM meeting on May 30, 2024, the South-Shore representatives’ proposal to postpone the vote to explore alternative funding solutions and continue negotiations with the Quebec government was rejected. The resolution was adopted by 24 votes to 4, despite unanimous opposition from South-Shore representatives.

The City of Saint-Lazare also adopted a resolution in June 2024 to express its opposition to this increase.

Challenges for South-Shore Municipalities

“We voted against this resolution for a good reason: everyone recognizes that the South-Shore is the poor child of public transit. It was too early to vote for a tax increase, given that our citizens have no other options but to use a vehicle. There are even cities that currently have no buses on their territory” said Lise Michaud, Mayor of Mercier and member of the CMM executive committee.

The city of Saint-Lazare, like other South-Shore municipalities, faces a paradoxical situation: although citizens contribute significantly to public transit funding, services remain limited or even nonexistent in some areas.

Public transit in these regions cannot be developed in the same way as in large cities like Montreal, due to different needs and much lower population density. Consequently, families in Saint-Lazare often find themselves obliged to own two or more vehicles, as there is virtually no other option for their daily travel. This reality imposes an even heavier financial burden on our residents, as we have proportionally more cars on our territory than cities like Montreal, where it is possible to live without a vehicle.

Financial Challenges of Public Transit

In Greater Montreal, the public transit operating deficit is estimated between $560 million and $700 million per year for the 2025-2028 period, according to the ARTM. The Quebec government plans to cover about 70% of the “conjunctural” deficit, that is, the one attributable to the decline in ridership due to the pandemic. In 2024, it announced aid of $265 million to fill these conjunctural deficits. For 2025, discussions are still ongoing regarding the exact amount the provincial government will allocate to public transit funding.

This situation puts considerable financial pressure on municipalities, which must face unpredictable expenses without having diversified revenue sources. Unlike provincial and federal governments, municipalities have very few options to fund their expenses outside of residential taxation. This makes each unforeseen increase even more difficult to absorb and limits their ability to invest in other essential services while fulfilling obligations related to public transit.

I want to remind you that, although we are required to fund public transit, we have very little influence over the decisions made, due to the overwhelming decision-making power that Montreal exerts over us within the CMM.

Budget Deficits in Public Transit

The budget deficits in public transit can be explained by three main causes:

1. High inflation and labor shortages have led to increased maintenance and operating costs.
2. The decline in ridership related to the pandemic, with overall ridership at 75% of its 2019 level in 2023, representing a revenue loss of $94 million in 2024.
3. The commissioning of the Réseau express métropolitain (REM), which transfers fare revenues from metros, trains, and buses to the REM, creating an additional deficit of $30 million in 2024, and nearly $120 million per year starting in 2027.

An Unequal Distribution of Responsibilities

Although the Quebec government acknowledges the importance of public transit, it does not distribute the financial burden equitably, leaving CMM municipalities to shoulder a significant portion of the system’s funding. For instance, in 2025, Saint-Lazare is required to contribute $1,198,975 to the ARTM through its allocated share (quote-part), in addition to the registration fees paid directly by its citizens. Moreover, the municipality itself must cover these fees for each vehicle registered in its territory. With the commissioning of the REM at Anse-à-l’Orme this year (2025), this contribution will increase exponentially, despite the absence of service improvements in the Vaudreuil-Soulanges territory.

For small municipalities like Saint-Lazare, which cannot develop traditional public transit networks, this situation represents a double burden: they must fund a system that does not meet their needs, while having very little influence in decisions made at the CMM level.

A Need for Transportation Adapted to Our Realities

For public transit to truly benefit all regions, it is essential to review the funding distribution to make it more equitable and to strengthen the voice of municipalities in decisions that concern them. The Quebec government must also establish recurring and stable funding to alleviate the financial burden on municipalities and ensure sustainable development of public transit.

Citizens of Saint-Lazare, like those in many South-Shore municipalities, suffer from structural inequality in public transit funding. Not only must they contribute disproportionately, but they receive little or no services in return. This situation requires collective mobilization to demand a more equitable system, where each contribution reflects not only real needs but also access to services.

Furthermore, the development of public transit must be adapted to the realities of municipalities like Saint-Lazare, where low density and distance from major public transit routes make traditional urban transit models inapplicable. If we’re going to have public transit at all, it’s crucial to invest in flexible and tailored solutions that meet the specific needs of our population and concretely improve local mobility.