On August 30, 2023, the Government of Quebec issued Order in Council 1417-2023, amending the Regulation governing the municipal tax for 9-1-1 services under the Act respecting municipal taxation (chapter F-2.1). This amendment updates the municipal tax framework for emergency 9-1-1 services, introducing both a tax rate increase and an annual adjustment mechanism linked to inflation. The primary aim of this regulation is to create a more effective and responsive taxation structure that ensures sufficient funding for municipal 9-1-1 services. Utilizing the authority granted by section 262 of the Act, the government has raised the tax rate from $0.46 to $0.52 per telephone service. This increase is intended to bolster the financial resources available to local municipalities, enabling them to maintain and enhance their emergency response services.

Additionally, the regulation introduces an annual adjustment mechanism that allows the tax amount to be modified each January based on the annual change in the average Consumer Price Index (CPI) for Quebec, excluding certain items such as alcoholic beverages and tobacco products. The adjustment process involves rounding; if the calculated tax includes a fraction less than $0.005, it is rounded down, while fractions of $0.005 or more are rounded up. The Minister of Municipal Affairs will publicly communicate these adjustments by September 30 of the preceding year.

Local municipalities must align their bylaws with this amended regulation, specifically by passing an amending bylaw by November 10, 2023, to ensure compliance with the new provincial standards. This deadline is essential for municipalities to prepare and implement the necessary changes to their tax structures. The consultation process for these amendments involved the Minister of Municipal Affairs engaging with various stakeholders, including the Union des municipalités du Québec, the Fédération québécoise des municipalités locales et régionales (FQM), and representatives from the City of Montreal and the telecommunications sector. This collaborative approach highlights the government’s commitment to incorporating the perspectives of key stakeholders in the decision-making process.

The regulation will take effect 15 days after its publication in the Gazette officielle du Québec, with the new tax rate starting on January 1, 2024. The annual CPI-based adjustments will begin in 2025, marking a shift toward a more sustainable financial model for municipal emergency services. In summary, this regulation signifies a significant advancement in refining the municipal taxation system for 9-1-1 services in Quebec, emphasizing the need to enhance the financial viability and responsiveness of emergency services through periodic tax adjustments and stakeholder engagement. This initiative reflects a broader commitment to improving public safety and ensuring that municipalities are prepared to meet the evolving demands of emergency response.

Quebec (OIC 1417-2023) September 13, 2023