Valerie Plante’s first budget as mayor was received less than enthusiastically by property owners and Montreal’s suburbs due to tax hikes, but members of the city’s business community said they’re also not happy.

“We just did a rough back of napkin calculation on the increase in our taxes here,” said Ryan Bloom, owner of the Southwest borough’s Rustique Pie Kitchen. “We’re going to have to sell $15,000 worth of product just to pay to come out even on these new taxes.”

While general non-residential property taxes are going up 2.1 per cent, the water tax is also going up by 0.8 per cent. It’s the first water tax increase since 2012.

Hardest hit is Outremont, where in total taxes on businesses are going up 6.3 per cent. Rosemont-La Petite-Patrie businesses will see their taxes go up 4.6 per cent, as will the Southwest borough.

While Outremont businesses might see their tax bill going up the most, the worry over what the hikes will mean for the bottom line extend across the city.

Genevieve Bolla, owner of Plateau Mont-Royal’s Studio Set Pilates, said that after being in business for less than two years, there is no money in their budget to pay more in taxes.

“It’s a bit scary, as soon as we have more expenses, we know that our profit is going to go down and we have to pay our loans back a bit later,” she said. “Of course it’s harder to plan.”

Bolla’s co-owner, Miriah Brennan, said that while Plante has expressed a desire to help small businesses thrive, this will do anything but.

“The government will say, ‘We do really support small businesses and we want small businesses to really flourish in the city,’” she said. “It’s then confusing when we have the same tax increase as a very large business.”

Canadian Federation of Independent Businesses spokesperson Simon Gaudreault said small entrepreneurs are being unfairly affected.

“Even if you adjust your prices in line with inflation, you still have to come up with this one per cent that you have to resolve somehow,” he said. “So, are you going to cut somewhere else, are you going to cut in your payroll, are you going to cut in your profits?”

Bloom noted taxes aren’t the only rising expenses they have to contend with.

“Property tax increase in 2017, minimum wage increases in 2017 and now newly announced tax increases in 2018,” he said.

Plante drew fire from property owners for raising property and water taxes by a total of 3.3 per cent, which is higher than the inflation rate. Among Plante’s campaign promises prior to November’s election was to not raise property taxes above the inflation rate.

The new mayor has defended the budget, saying she had technically kept her promise as without the water tax hike, the raise was only 1.9 per cent.

The budget also drew criticism from the city’s 15 demerged cities, whose agglomeration fees went up by as much as nine per cent. The mayors of those suburbs said the increases would force them raise taxes and cut services and said they had not been included in the budget process.