Merchants cry foul over new city tax for parking lots

Mélissa Gélinas

When the 2025 budget was adopted on December 10, 2024, it was decided to extend the taxation of non-residential parking spaces to the entire territory of the city of Gatineau. However, approval of this new tax is far from unanimous among merchants.

More specifically, this measure targets large commercial parking areas, including registered vehicles, whether customers or employees. Small businesses, private and public transit companies, car dealerships, taxi companies and spaces related to the day-to-day activities of businesses (such as delivery and logistics) benefit from an exemption.

The objectives are to diversify revenues, reduce dependence on property taxes and reduce environmental impacts and mobility. The measure is expected to generate revenues of $27 million for the city. “What we want to tax are large parking spaces, because we know that by doing this, we will be able to redevelop the city within the city; be able to limit these large parking spaces in order to transform them, for example, into underground parking lots, or into housing that will help address the housing crisis,” emphasized Gatineau Mayor Maude Marquis-Bissonnette.

Given inflation, high interest rates and a lack of manpower, many businesses have seen their costs explode, and even more so since receiving their municipal tax bill. “We’re talking about a tax increase of up to 30%,” said Etienne Fredette, Executive Director of the Gatineau Chamber of Commerce. “This new tax represents additional pressure for already weakened sectors. We’re talking about more than $27 million that is being absorbed by 40% of businesses.” He emphasized that it is essential to remember that businesses have been hit hard economically since the pandemic. “As for timing, it couldn’t have been worse!” he exclaimed. Furthermore, these businesses are mainly made up of grocery stores and pharmacies, which represent essential services. “Most grocery stores in our region are paying about $300,000 in additional taxes,” said Fredette. “The costs will therefore have to be passed on to customers. As a result, your bag of carrots could cost you more.”

In addition to raising prices for consumers, this new tax is likely to weaken businesses and reduce jobs. “This tax is definitely not going to solve the challenges of sustainable mobility,” he said. “We are therefore asking the city to review the way it applies it, if not abolish it.”