Taxation
Tax Types1. Annual Taxes
Annual tax bills are issued every January. Annual taxes are used to pay all current-year expenses, including the portions paid to the regional county municipality, the Autorité régionale de transport métropolitain, and the fees charged by the Sûreté du Québec. If your annual taxes exceed $300, you may pay in four equal instalments, in February, May, August and November. You should receive your tax bill by January 31 each year. If you are paying through your mortgage, it is your responsibility to give your tax bill to your financial institution. If you have not received your bill by January 31, you should contact the Municipality of Notre-Dame-de-l’Île-Perrot as soon as possible. The annual tax bill contains the following items:
- a. Taxe foncière [property tax] Property taxes are calculated on the basis of the total assessed value of your property (land and buildings) and tax rates set by the municipal council each year. In Notre-Dame-de-l’Île-Perrot, there are three classes of property tax, namely non-residential (commercial), farm and residential (residual).
- b. Compensation pour le traitement et la distribution de l’eau [compensation for water treatment and distribution] This compensation covers the cost of water treatment and distribution. The amount is the same regardless of the property value. Land containing one or more buildings and serviced by a water main is subject to this compensation, whether or not water is in fact used.
- c. Compensation pour le traitement des eaux usées [compensation for wastewater treatment] This compensation covers the annual cost of wastewater treatment. The amount is the same regardless of the property value; however, some industrial buildings may be charged a higher amount. Land containing one or more buildings and serviced by a sewer is subject to this compensation, whether or not the sewer is actually used.
- d. Compensation pour la collecte, le transport et la disposition des matières résiduelles [compensation for residual waste collection, transportation and disposal] This compensation covers the cost of residual waste collection, transportation and disposal. Except for properties set out in the tax bylaw, all land within the municipal limits and containing one or more buildings is subject to this compensation, whether or not residual waste services are used.
- e. Compensation pour la collecte, le transport et la disposition des matières recyclables [compensation for recyclable materials collection, transportation and disposal] This compensation covers the cost of recyclable materials collection, transportation and disposal. Land within the municipal limits and containing one or more buildings is subject to this compensation, whether or not recyclable materials services are used.
- f. Compensation pour la collecte, le transport et la disposition des résidus alimentaires [compensation for food waste collection, transportation and disposal] This compensation covers the cost of food waste collection and transportation. Land within the municipal limits and containing one or more buildings is subject to this compensation, whether or not food waste services are used.
- g. Taxe de répartition locale [local improvement levy] If your area is subject to a local improvement levy, the amount will be included on your annual tax bill. Local improvement levies cover the capital and interest on upgrades in your neighbourhood or area. The upgrades typically involve roads, sewers, water mains and street lamps. A local improvement levy is usually collected over a 20-year period. In most cases, you will be allowed to make a cash payment every five years, so that you can pay out the capital all at once.
2. Supplementary Taxes
If construction work (for example, a garage, solarium, second storey or deck) was completed during the calendar year, a supplementary tax bill will be issued that reflects your property’s added value. If you constructed a building on vacant land, you will also be subject to the compensations set out in items 1b, 1c, 1d, 1e and 1f.
3. Excess water consumption tax
When the annual water consumption for a building exceeds 250 m³, an additional tax of $1,068/m³ is charged on the excess consumption. Each year, between July 15 and August 15, each property owner must submit it’s water meter reading online or by phone.
For example, if the meter reading is 2 000 m³ on August 10, 2022, and 2 300 m³ on August 15, 2023 (the date will vary depending on the reading date), your bill will be $53.40. The amount is calculated as follows:
|
Description |
Amount |
|---|---|
|
Current reading |
2,300 m³ |
|
Minus previous reading |
– 2,000 m³ |
|
Minus base amount |
– 250 m³ |
|
Taxable volume for the year |
50 m³ |
The excess water consumption tax is therefore equal to 50 m³ × $1.068/m³ = $53.40
The excess water consumption tax is billed by November 1 each year and is payable within 30 days.
4. Real property transfer duty
The Government of Quebec has authorized all municipalities to collect a duty on transfers of real property located within their limits. This tax field was created by the Government of Quebec after it stopped distributing to the municipalities a portion of the revenue generated by the sales tax. This duty is commonly called the “welcome tax” or “taxe de Bienvenue” after Jean Bienvenue, the minister who introduced it. However, this duty is not a welcome tax since, were that the case, it would also apply to renters. This duty is in fact a sales tax. The real property transfer duty is paid by the purchaser in each real property transaction on the basis of the standardized municipal assessment or the price stated in the contract, whichever is greater. The City usually issues a bill in the month following the transaction. It is payable in full within 30 days. If you have not received a bill within a month of the transaction, you should contact the City of Notre-Dame-de-l’Île-Perrot as soon as possible.
The rules and rates for calculating the real property transfer duty is prescribed by law as follows:
- 0.5% of the first $58,900;
- 1.0% between $58,900 and $294,600;
- 1.5% between $294,600 and $500,000;
- 3.0% of amounts exceeding $500,000.
For example, the duty for a house with a municipal assessment of $499,000 and a sale price of $560,000 is calculated as follows: The amount used is $560,000, since it is the greater of the two values (standardized value and sale price).
|
Description |
Amount |
|---|---|
|
0.5% of the first $58,900 |
$294.50 |
|
1.0% of $235,700 ($294,600 – $58,900) |
$2,357 |
|
1.5% of $205,400 ($500,000 – $294,600) |
$3,081 |
|
3.0 % of the remaining $60,000 ($560,000 – $500,000) |
$1,800 |
|
Real property transfer duty |
$7,532.50 |
5. School taxes
School taxes are managed and administered by school boards, which are completely separate from the municipality. For more information, please go to the websites of the local school boards.
