Jason Stockfish, Local Journalism Initiative Reporter | [email protected]
For the third year running, the Municipality of Jasper is writing off 50 per cent of taxes owed by the provincial government, specifically for the provincial building.
At the March 15 council meeting, Mayor Richard Ireland read a motion in favour of absorbing the provincially unpaid taxes so that administration could close its financial books for 2021.
A request for decision from administration on the subject explained why these uncollectible taxes had to be absorbed by municipal governments.
“Unfortunately, beginning in 2019 the province of Alberta unilaterally decided to pay less than the full amount of property taxes levied by local municipalities,” administration stated.
“The recently announced provincial budget shows that the Government of Alberta continues to only cover half the amount of property taxes that would normally be owed for provincial properties that are exempt from taxation.”
The document further noted the ramifications of the province’s decision for municipal taxpayers.
“With the province paying less the costs of providing essential services such as policing, fire, water and waste management, and transportation for provincial properties is essentially shifted to all other property owners in the municipality.”
At the May 8 committee of the whole meeting, Given explained the situation in which municipal governments’ find themselves.
“At a high level, council members will appreciate that as the municipal government, that is created by the province, our ability to compel the province to do anything is pretty limited,” Given said.
“We cannot tax them, so there is a longstanding practice on programs available at both the provincial and federal levels where those levels of government will pay amounts to municipalities that are equivalent to what they would have paid in property taxes.”
Given said the principle of the matter was provincial and federal properties use municipal resources—among many services, the roads that these properties use get potholes, and nearby sidewalks are maintained and cleared of snow.
“And so, for many, many years, both the provincial and federal governments have essentially paid their bill,” he said.
“Beginning in 2019, the province unilaterally decided to, put it this way, short pay their bill. They just said, ‘No, we’re not paying the amount that you sent us. We will pay a lesser amount.’”
Given said the inevitable result of this uncollectible tax from the province is that municipal tax payers end up footing the bill.
Ultimately, the federal government could do the same with buildings in Jasper that house federal operations, as municipalities receive similar funds known as Payments In Lieu of Taxes.
According to Ireland, the federal government recognizes the value of the services provided.
“The Government of Canada firmly supports the principle that, as a property owner, even though it is exempt from taxation, it should share in the cost of local government equitably with other property owners in the community,” Ireland said.
“In other words, they recognize and they honour at the federal level, the obligation to pay for the services that they receive, even though, legally, the municipality cannot tax a higher level of government.”
In order to allow administration to complete its financial statements from 2021, Ireland indicated he would still vote in favour of the motion.
Before voting, Ireland took the opportunity to make his displeasure with the “morally reprehensible” situation known.
“It is my profound objection to the practice and the attitude of what should be our provincial partner.”
Ireland had a bigger issue with the “unilateral, unjustifiable action” of the provincial government, that being the message he believes is intentionally being sent to the public.
“It is a message which purposefully undermines respect for, and confidence in, municipal government, municipal management and municipal services,” he said.
“It absolutely erodes trust at a community level.”
Ireland continued by stating that rather than seek the fairness the Alberta government expects from the federal government, the province is shirking its “moral and ethical obligation” to municipalities, while complaining about its own tax burden.
“And this from a government which has launched and carried on its own campaign on a fair deal for Alberta within Canada,” he said.
“It seems to me, if they seek fairness, perhaps they could start by exhibiting fairness.”
Speed limit reduction
Council also voted unanimously to approve the first two readings of a bylaw implementing 30 km/h zones throughout Jasper.
Currently, the Traffic Safety Bylaw allows for motorists in Jasper to drive 50 km/h unless otherwise posted.
As administration has recommended in the past and councillors and mayor have long agreed, the change is being made for safety reasons, mostly for pedestrians and cyclists.
Council is expected to give the bylaw third and final reading in April, at which time the speed limit change will become law.
