âWelcome taxâ helps Quebec cities generate their own revenue
In 2022, Quebecâs so-called âwelcome taxâ generated more than $1.4 billion for municipalities, with Montreal alone pulling in more than $410 million. Though it sounds like a penalty for new arrivals, its name is actually derived from former Quebec cabinet member Jean Bienvenue, who tabled the bill proposing the tax; Bienvenueâs surname translates into English as âwelcomeâ. These municipal-level real estate transfer taxes can range from a few thousand to tens of thousands of dollars, and property buyers must pay within 30 days of closing their purchase.
âWhen a property title changes hands, the province taxes that transaction,â says Brian Wenzel, Associate Professor of Accounting at 91ÉçÇű Desautels. The municipal-level tax was added in 1976, giving cities a degree of independence from the AssemblĂ©e nationale. âThe welcome tax stays inside Montreal. Itâs a nice benefit for the city because itâs one of the few areas where the city can actually raise revenue without having to ask Quebec City.â