Reform of municipal land and transfers

Summary#

• Acquisition of tax-delinquent properties: a municipality may be declared the owner of a property if municipal taxes have not been paid for at least 3 years, following public notice and a judgment from the Superior Court. This mainly targets small vacant lots, often non-buildable, for municipal use or to sell to neighbors. Real rights (e.g., mortgages) are extinguished, with compensation for the holders.

• Small contiguous parcels: a municipality may sell or give a low-value parcel to the neighboring owner to regularize lot boundaries. The rule prohibiting "municipal grants" does not apply to this targeted assistance.

• Leasing/transfer to organizations: cities and regional county municipalities (MRCs) may purchase or construct buildings to lease to public organizations, non-profit organizations (NPOs), and childcare centers, and sell or give them properties. They must publish, at least twice a year, an online list of leased or transferred properties (and other assets over $50,000 transferred without tender), including the price/rent and the identity of the beneficiary.

• Building regulations: municipalities may specify requirements, including energy efficiency standards. They may require that certain reconstructions or repairs comply with current standards (minimum compliance period of 6 months).

• End of exemption for presbyteries: the exemption from municipal and school property taxes for certain presbyteries is abolished. The regulation that capped the non-taxable value is also repealed. Effective date: January 1, 2027.

• "Welcome tax" (transfer duty): new exemption during a transfer between co-owners in undivided ownership, if the transferee is a natural person already a co-owner, residing on-site.

• Municipal governance: powers of general directors harmonized (authority over staff, power of suspension with report to council). Uniform rules for appointing/suspending certain officers (clerk, treasurer, etc.) without pay. Notice and convening: extraordinary meeting null if all absent members have not received notice; minimum notice period of 24 hours; possibility to waive in writing.

• Municipal borrowing and organizations: easing of approvals when the loan is covered by a government grant (tolerance up to 10% for interest and fees). Various procedural adjustments to expedite projects. Advertising thresholds raised (from $10,000 to $50,000) and frequency reduced (at least twice/year).

• Grants to NPOs: clarification that NPOs are not "industrial or commercial establishments" under the law prohibiting municipal grants, opening the door to more municipal assistance for NPOs.

• Measures specific to certain cities:

  • Montreal: agreements between boroughs to jointly operate facilities; possible agreement with the GALOPH Society (NPO) to develop the former racetrack (financing, construction, marketing), with exemption from property taxes for its buildings and subject to access to information and contract rules.
  • Quebec City: facilitated mechanisms to modify/dissolve certain para-municipal organizations; assets revert to the City.

• Effective date: upon sanction, except for tax changes affecting presbyteries (on January 1, 2027).

What This Means for You#

• Property owners in tax arrears (3 years or more): you risk losing the property by judgment. You can pay beforehand. If your rights are extinguished, compensation is possible, reduced by taxes, interest, and fees. Claim period: 3 years.

• Neighbors of small vacant lots: your municipality may acquire and then sell/give you a strip of land to regularize your lot, at low cost and with less paperwork.

• NPOs, childcare centers, and public organizations: easier access to municipal premises leased under determined conditions, or to transferred properties, to provide services (early childhood, community, cultural, etc.).

• Taxpayers: more online transparency regarding leased or transferred properties and assets over $50,000 transferred without tender. Fewer monthly paper notices.

• Builders and property owners: expect clearer construction standards, including energy efficiency requirements, especially during reconstructions.

• Religious communities with presbyteries: starting in 2027, payment of municipal and school taxes for the targeted presbyteries; anticipate higher annual costs.

• Co-owners in undivided ownership: if you purchase another share of the property where you already reside, the "welcome tax" may be exempted.

• Montreal and Quebec City: accelerated local projects (e.g., racetrack in Montreal), and increased cooperation between boroughs in Montreal.

Costs#

• Municipalities:

  • Legal and administrative fees for court applications and cancellations in the land registry.
  • Possible compensation to be paid to holders of real rights (partially offset by unpaid taxes).
  • Maintenance and updating costs for lists of transfers/leases; savings from less frequent advertising.
  • Reduced delays and financing costs for loans covered by grants.
  • Additional revenues starting in 2027 related to the taxation of certain presbyteries.
  • Resources to be allocated to implement new construction standards.

• Organizations and property owners:

  • NPOs/childcare centers: potentially lower-cost premises through the city.
  • Religious communities: increased tax burdens in 2027.
  • Co-owners: savings on the "welcome tax" in certain cases.

• Government of Quebec: No publicly available information.

Supporters' Viewpoint#

• Provides concrete tools to redevelop vacant lots and resolve chronic unpaid tax issues.
• Supports the provision of local services (early childhood, community) by facilitating access to premises.
• Accelerates the realization of projects funded by Quebec/Canada by simplifying borrowing.
• Modernizes construction rules, promotes energy efficiency and safety.
• Improves internal management (powers of general directors, clear convocations).
• Maintains transparency through more targeted online lists while reducing paperwork.
• Advances structuring projects in Montreal (racetrack) and facilitates cooperation between boroughs.

Opponents' Viewpoint#

• Possible infringement on property rights: fear of disguised expropriations, compensation deemed insufficient once taxes and fees are deducted.
• Risk of favoritism in the absence of tenders for leases or transfers to NPOs/childcare centers, despite the publication of lists.
• Perceived decrease in transparency: $50,000 threshold higher and less frequent notices.
• Increased tax burden for certain presbyteries, potentially weakening religious communities.
• Municipalities could assume financial risks by becoming landlords and multiplying real estate interventions.
• Energy efficiency standards and upgrade obligations could increase costs for some property owners.
• Concerns about the governance of organizations linked to the city (e.g., GALOPH Society) and associated tax exemptions.