Alberta municipalities say they're tired of being the government's tax collectors

Alberta municipalities will advocate for the provincial government to assume responsibility for collecting provincial education property taxes, following a vote at the Alberta Municipalities Convention & Trade Show Thursday in Calgary. The topic of provincial education property taxes kicked off the resolutions portion of the convention, as elected officials from municipalities across Alberta gathered for the second day of the three–day annual meetings. “We feel strongly that the government of Alberta should assume direct responsibility for the collection of provincial educational property tax, and relieve municipalities of this burden,” said Mayor Shane Boniface of Rocky Mountain House when presenting the proposed resolution to the audience. Boniface argued that shifting this responsibility would lead to more clarity for taxpayers. “The practice of integrating provincial education tax and municipal tax notice leads to misconceptions by the public regarding the accountability and use of property taxes,” Boniface said. .Mayor David McRae, of Redwater, spoke against the resolution before the vote. “My concern is that we’re not addressing the fact that this is the only revenue source that the province uses where the municipality is included,” said McRae. “They don’t use property tax to fund hospitals, policing, any of these are all external. I think the focus should be looking at changing the whole process so the property tax belongs to the municipality.”Instead, McRae argued that they should advocate for the Provincial Government to cease using property taxes for education funding. “Arguing that the province should continue using property tax for education only muddies the water, and down the road, we’re going to end up with a two–tier system,” McRae said. “We’re going to have arguments as to whose assessment is correct, and where the money should go, and how it should be paid back to the municipalities if there’s an overpayment.” Municipal elected officials supported Boniface, as the resolution passed with over 86% of officials voting in favour. “As I understand it, what we’re asking the provincial Government to do is to look after collecting their own tax, and stop putting the burden on municipalities,” Boniface told voters. “If we’re going to start collecting education tax for them, then maybe we should start taking a fee off of that.”.This is not the first time Alberta municipalities have moved to advocate against the provincial education property taxes. In 2014, the group called on the provincial government to eliminate the provincial education property tax. “The province will not eliminate the education property tax as it provides $2.1 billion in required funding to support the education system,” responded the Alberta Government in 2015, according to the Alberta Municipalities website. “Funding a portion of the education costs through the property tax is a practice in most North America jurisdictions.”The provincial government solidified their stance in 2016. “The Minister stated that the Government of Alberta will continue to collect education property tax from municipalities that are already collecting from their ratepayers, and removing education tax is not something that government is considering as it provides funds required for operating the provincial education system.”Despite previous struggles to accomplish their goal of shifting or eliminating the provincial education property tax, Alberta Municipalities has optimism that this time may be different. “Over the past decade, the Government of Alberta has given mixed reasons for declining to explore solutions,” stated Alberta municipalities in the written proposal. “However, Premier Smith expressed interest in property taxes and Alberta’s approach to property tax collection during her address at ABmunis’ 2024 Convention.”Following the most recent vote, the resolution will be sent to the Government of Alberta. Additionally, Alberta municipalities will advocate to the government in favour of the resolution.

Alberta municipalities say they're tired of being the government's tax collectors

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