Smith open to municipal act reform after local leaders vote for tourism tax

Premier Danielle Smith has said she is open to rethinking the province’s entire Municipal Government Act (MGA), following concerns from local leaders who believe current rules and regulations prevent them from responding to the pressures of tourism and rapid growth in Alberta.The comments came after Councillor Taylor “Teej” Johannesson of Sylvan Lake asked Smith whether or not her government was prepared to “take the handcuffs off” municipalities that feel restricted by provincial regulations during a Q&A session at the Alberta Municipalities Convention and Trade Show in Calgary on Thursday.Johannesson said communities like his haven’t been able to implement the same sort of revenue tools that are used by popular tourist spots like Banff and Canmore, despite facing similar challenges.“We feel that we can’t do certain things because of rules and regulations that the government has,” Johannesson stated.“We spend a ton of money cleaning up our beach for people who come here and they really don’t respect it.”.FILDEBRANDT: Alberta football coach sacked for his views on trans ideology.Smith acknowledged that municipalities across Alberta have raised concerns about the limitations of the MGA.“I feel like the Municipal Government Act is a little bit of a Franken-bill — it has just been added to and added to over the years,” Smith said.“I wonder if there is a need to rethink the whole act rather than just changing it piecemeal.”Smith said that any changes must “maintain an investment climate” that makes the outside world want to invest in the province and avoid creating unnecessary regulatory barriers or massive tax burdens for businesses.However, she said her government is willing to consider special provisions for municipalities affected by large tourism numbers with “shadow populations” several times larger than their residents, which put “a lot of strain on [the] community.”The discussion came a couple of hours after delegates voted overwhelmingly in favour of a resolution calling on the province to allow municipalities to implement a Municipal Accommodation Tax (MAT).The resolution, introduced by the City of Airdrie and seconded by the Town of Fox Creek, argued that an optional MAT would provide a new, visitor-funded revenue stream for tourism infrastructure, easing pressure on local taxpayers.According to the resolution, a 2% levy could generate between $800,000 and $1 million annually for medium-sized municipalities like Airdrie, while smaller communities could bring in tens of thousands of dollars.Airdrie Deputy Mayor Ron Chapman told attendees that municipalities were struggling to fund infrastructure used heavily by tourists.“Roads, water infrastructure, arenas, schools, and other community amenities are currently funded by local taxpayers,” Chapman said..RURAL VS. URBAN DIVIDE: Electricity inequality sparks debate at Alberta Municipalities Convention.“This resolution would give municipalities the option — not the requirement — to implement a modest accommodation tax so visitors help pay for the infrastructure they use.”Chapman noted that similar taxes exist in British Columbia, Manitoba, Ontario, and Quebec, where MAT revenue supports tourism promotion and local improvements.“For Airdrie, this could generate close to a million dollars annually,” Chapman said.“Smaller communities could see tens of thousands, which can make a real difference.”The resolution passed 349–121, with 74.3% support.No delegates argued against it.If adopted by the province, Alberta municipalities would be able to set their own MAT rates and collection methods through local bylaws.Supporters of the resolution say this aligns with the province’s broader goal of growing Alberta’s tourism economy to $25 billion by 2035.Smith did not comment on approving the MAT resolution but did reiterate that her government invites municipal officials to bring forward proposals that could provide ideas and recommendations in the future.

Smith open to municipal act reform after local leaders vote for tourism tax

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