Couillard vows slice of sales tax for municipalities

Premier Philippe Couillard is promising to allocate one percentage point of the province’s 9.975 per cent sales tax to cities and towns if the Liberals are reelected on Oct. 1.

Couillard made the promise Thursday while attending the general meeting of the Quebec Union of Municipalities in Gatineau.

On Wednesday, the union had complained that cities and towns must rely almost exclusively on property taxes as a source of municipal funding — a system dating from the 19th century and a fiscal dead end.

During a speech that received a standing ovation, Couillard said municipal funding is in need of an electro-shock and that he agreed with the union’s complaint.

Any eventual transfer of revenue from the one percentage point of sales tax would replace the $3.1 billion already transferred directly each year by the provincial government to the municipalities.

Meeting with reporters after his speech, Couillard figured revenues from the sales tax would “always” increase, barring a recession. Presse Canadienne