Quebec financial update will see school taxes equalized
Quebec Finance Minister Carlos Leitao presented a budget-style financial update on Tuesday. Among the planned changes is the regional equalization of school taxes, doing away with the inequity that exists currently among neighbouring boards.
“This is huge,” said Eastern Townships School Board (ETSB) Chairman Michael Murray.
While the different boards on the island of Montreal had a standard rate, the rest of the province, the Townships included, had varying rates.
The result was that taxpayers without students enrolled with a specific board were free to register to pay school taxes to the board of their choice; the logical conclusion for many was to choose the board with the lowest rate available.
The vast territory covered by the ETSB meant a higher rate that its neighbours, but Murray pointed out the difference in
the rates was substantial, even between French boards as well.
“We thought a model should be put in place across the province,” Murray said, pushing for years for a system similar to that used on the island of Montreal.
“Now everyone in the Estrie will pay the same mill rate,” Murray said, adding the rate chosen will be the lower one.
Murray hopes the details will be worked out in time for 2018-19 tax bills.
While school board budgets have been designed based on current rates, Murray said the finance minister’s recent announcement includes a compensation package for boards that do not meet their required financing goals through taxation.
While Murray agreed there has been some erosion of the tax base for the ETSB in recent years, he said there was no way to determine whether it were because of people opting to register to pay to French boards with lower rates, or if there were other circumstances.
“We don’t track that kind of thing,” he said.
In addition to the equalization of the tax rate, Murray was also pleased with Finance Minister Leitao’s announcement that parents with children in school will receive $100 per child per year for the next two years to offset fees charged by school boards.
“That’s another big plus for us,” commented Murray.