COVID-19 Pandemic - The government is moving ahead to July 1, 2020 the reduction of the school tax

QUÉBEC CITY, June 10, 2020 /CNW Telbec/ - To afford individuals and businesses greater financial flexibility during the COVID-19 pandemic, the government is moving ahead to July 1, 2020 the reduction of the single school tax rate.

The government had already announced in Budget 2020-2021 an additional reduction of nearly $182 million in the tax burden of property owners that attained two-thirds of the anticipated reduction. The addition of nearly $173 million is enabling the government to announce today full standardization this year.

Accordingly, property owners will benefit from a $355-million reduction in their tax burden for 2020-2021.

The school tax rate applicable to Québec for the period from July 2020 to June 2021 will thus be set at $0.1054 per $100 of standardized property assessment.

All told, the reductions announced last year and this year represent an annual saving of $622 million for taxpayers.

"This acceleration in the reduction of the school tax rate is an effective way to afford Quebecers financial flexibility when they need it the most. We are fulfilling our commitment to eliminate injustice between the regions by standardizing the school tax rate to the lowest rate in Québec. Lastly, it should be noted that the reduction of the school tax rate has no impact on funding for the education network."

Eric Girard, Minister of Finance

Related link:

For information on COVID-19 and the assistance programs offered, please visit Québec.ca/coronavirus.

Appendix
– Impact of the school tax reduction by region –

This appendix compares the situation of taxpayers in July 2020 with that prevailing in 2018 when the commitment was made.

Illustration of the reduction in the school tax for a residence with a value of $275 000

($)


2018


Single rate – July 2020



Tax rate

(1)

School
tax

(2)


Tax rate

(1), (3)

School
tax

(2)

Difference

Bas-Saint-Laurent

0.26107


653



0.10540


264


–389

Saguenay–Lac-Saint-Jean

0.30932


773



0.10540


264


–509

Capitale-Nationale

0.13360


334



0.10540


264


–70

Mauricie

0.30932


773



0.10540


264


–509

Estrie

0.18434


461



0.10540


264


–197

Montréal

0.17832


446



0.10540


264


–182

Outaouais

0.13694


342



0.10540


264


–78

Abitibi-Témiscamingue

0.13694


342



0.10540


264


–78

Côte-Nord

0.23901


598



0.10540


264


–334

Nord-du-Québec

0.30551


764



0.10540


264


–500

Gaspésie

0.28500


713



0.10540


264


–449

Îles-de-la-Madeleine

0.28420


711



0.10540


264


–447

Chaudière-Appalaches

0.22586


565



0.10540


264


–301

Laval

0.23095


577



0.10540


264


–313

Lanaudière

0.27072


677



0.10540


264


–413

Laurentides(4)

0.10540


264



0.10540


264


Montérégie

0.17832


446



0.10540


264


–182

Centre-du-Québec

0.29640


741



0.10540


264


–477

Note: In 2019, the average value of a single-family home in Québec was $275 148 according to data compiled by the Institut de la statistique du Québec and available from the Banque de données des statistiques officielles sur le Québec.

(1) The rate is applicable per $100 of adjusted standardized property assessment.

(2) The school tax payable includes the basic exemption of the first $25 000 of adjusted standardized property assessment.

(3) The single school tax rate corresponds to the lowest effective taxation rate in Québec in 2018-2019, that is, the rate in the Laurentides region.

(4) Taxpayers in the Laurentides region already benefit from the lowest school taxation rate in Québec.

 

Cision View original content: http://www.newswire.ca/en/releases/archive/June2020/10/c5341.html

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