The purpose of Bill 22, “An Act to Strengthen Municipal Powers to Intervene,” is, among other things, to restore greater tax fairness among taxpayers.
Currently, if a couple separates and one partner wants to buy out the home after more than a year, they have to pay the property transfer tax again—even if it was already paid at the time of the original purchase.
Often, the second “welcome tax” is significantly higher than the first, because the municipality takes into account the increase in the value of the share being bought out.
“Taxing owners twice for their own home makes no sense. I intend to fix this situation, which hits people for no reason at a time when property values are rising rapidly,” the minister said.
Bill 22 also aims to abolish the tax exemption granted to private presbyteries. They are defined as the principal residence of a person recognized as a “minister of religion.”
If the bill is passed, a minister of religion will be required to pay municipal taxes in full on their principal residence.
In addition, the bill will allow municipalities, under certain conditions, to acquire real estate properties on which property taxes have not been paid for at least three years.
At a press conference at the National Assembly on Wednesday, Ms. Guilbault expressed hope that Bill 22 would be adopted before the end of the parliamentary session, scheduled for June 12.
“This is a fairly consensus-based document. I think everyone will be in favor of putting money back in taxpayers’ pockets, so I hope we can pass it quickly,” she said.
