Montreal rolls out new car tax

The city of Montreal is introducing a new tax on all vehicles which mayor Grald Tremblay says will go towards improving public transit.

"It's a lot of money. Where do we get the funds to do that? Property taxes? As a result... we need to diversify sources of revenue," said Tremblay

Starting next year, every time Montrealers go to renew their vehicle registration they'll pay more, but Tremblay still hasn't decided how much more.

That amount will be disclosed when the city releases its 2011 budget in December.

Although it may appear contradictory to have drivers pay for better bus, metro and train service, Tremblay insists car owners will also benefit from improved public transit.

"It's going to be a win-win situation, not only for the people that use public transit, but also for the motorists; less idling, less waste of time," he said.

"It's not fair. It's abuse," said car owner Julien Perron who is skeptical the new tax will improve driving conditions in the city.

"That never happens....Money goes like that and we don't know what happens, but we have bad roads, always traffic, always jam," he said.

Demerged cities want in

Bill 22, adopted last year in the national assembly, gives the city the power to impose the vehicle tax and Montreal's 15 demerged cities want in on the action.

They've written to the province asking for the right to impose the same increase as Montreal.

"We feel it's logical for the entire agglomeration to have this power, we also feel it's only fair," said Peter Trent, speaking on behalf of the demerged cities on the island.

"We all have to contribute and especially car owners and drivers....because they have the most to gain from improving public transit," said Trent.

"If we wish to get rid of gridlock, if we wish to not keep on adding concrete highways everywhere. The only way to do it is by public transit."

But CAA Quebec wants to remind officials drivers already pay a $30 surcharge on their license, which goes toward funding public transit as well as an additional tax ofthree cents per litre of gas.