Bill 104: What Changes for Municipalities and Economic Players

Overview of the Bill

Bill 104, known as An Act to amend various provisions in particular to follow up on certain requests from the municipal sector (S.Q. 2025, c. 33, hereinafter the "Act"), was assented to on November 12, 2025. Its provisions, most of which came into force on the same date, bring about important changes that primarily concern municipalities, but are also likely to have an impact on certain economic players.

Changes Affecting Municipal Governance and Internal Mechanisms

For municipalities, the Act introduces the possibility for any municipal council with at least 12 councillors to set up an executive committee by bylaw adopted by a two-thirds majority (s. 70.1 et seq. CTA). Chaired by the mayor, the committee will be able to exercise powers delegated by the council and award certain contracts, subject to the limits provided by law, and it cannot be dissolved.

Moreover, municipalities wishing to establish or adjust sectors for the purposes of imposing a general property tax will, upon adoption of a resolution expressing this intention, be able to request a preliminary property assessment roll (s. 264.64.10.1 AMT).

They also gain the ability to set separate property tax rates for non-residential properties, without having to adopt a strategy to reduce the tax burden differential between residential and non-residential properties (s. 244.64.9 AMT). The cap on the special rate applicable to residential buildings has also been raised for fiscal year 2026 (s. 42.3 of the Act).

The Act also relaxes the rules governing municipal contracts, allowing them to be awarded to any public body (s. 14 ACPB), and modifies certain obligations of elected officials, namely, the deadline for filing the declaration of pecuniary interests (s. 358 AERM) and the elimination of certain obligations of reporting to the ministry.

Finally, the deadline for adopting the revised code of ethics and professional conduct after each election is extended by two months (s. 23.11 Municipal Ethics and Good Conduct Act), and adjustments are made to the composition of the board and executive committee of the Communauté métropolitaine de Montréal. Québec City may also delegate certain powers relating to heritage sites and buildings to the Commission d’urbanisme et de conservation.

Measures with a Direct Impact on Businesses and Real Estate Developers

The Act also introduces a number of changes that are likely to have a wider impact, particularly on businesses and real estate developers.

It stipulates that regulatory provisions designed to increase density along public transit lines are no longer subject to referendum approval, regardless of the standard’s initial value (s. 123.1 ALUPD).

It also allows municipalities to issue a permit prior to payment of a contribution intended to fund municipal works or services, subject to a commitment and financial guarantees (s. 145.22 ALUPD).

The rules on suretyship are relaxed: ministerial authorization is required only if the total value exceeds 20% of the municipal budget, with a separate ceiling of $2.5 million for certain bonds (s. 28(3) CTA / s. 9 MCQ).

A municipality can now act as surety for a non-profit organization to promote the operation of an industrial rental building without having to obtain ministerial authorization (subject to the above-mentioned general rules on suretyship), and enter into leases without term limits (s. 6.1 and 7 Act respecting municipal industrial immovables).

They also gain the power to grant a tax credit for land that has become vacant following a disaster, with the possibility of retroactive application to January 1, 2024 (s. 253.1 AMT).

The valuation method for properties containing social or affordable housing is adjusted to take into account the limitations associated with rent setting, a measure applicable to property assessment rolls set to take effect on January 1, 2027 (s. 45.1 AMT).

Finally, municipalities can now grant assistance for the maintenance of multi-use roads within the meaning of the Sustainable Forest Development Act (s. 91(5) MPA).

Miscellaneous Amendments and Transitional Measures

Finally, the Act provides for the annulment of criminal proceedings, guilty pleas and judgments in connection with certain violations of the Residential Swimming Pool Safety Regulation committed before April 30, 2026, with reimbursement of costs and fines (s. 42.6 of the Act). Several amendments are also being made to the Act respecting the Autorité régionale de transport métropolitain and the Act respecting public transit authorities.

These changes are designed to modernize the municipal legislative framework, offer cities greater flexibility and support urban economic development. The full text of the Act should soon be available on the Publications du Québec website.

Considerations and Possible Actions for Business Organizations

These legislative changes will have practical repercussions on taxation, approval processes, project planning, and collaboration with municipalities. To be better prepared, businesses should:

• review their current projects to identify those that could benefit from the new rules (permits before payment, softening of rules regarding suretyship, tax credits, land-use intensification without referendum approval);
• anticipate potential changes in property taxes, particularly for non-residential properties;
• revise their development or acquisition approaches to take future property valuation adjustments into account;
• hold discussions with the municipalities on how they intend to exercise their new powers.

These actions will enable companies, promoters and investors to take better advantage of the greater flexibility, avoid at-risk areas and integrate the new rules into their business decisions.

Do you have questions about the effects of Bill 104 or how to adapt your projects to these new rules? Our Litigation team can assist you.