WHEREAS the province deleted the provincial school property tax requisition from assessment class four, machinery and equipment as referred to in section 297(l)(d) of the Municipal Government Act;AND WHEREAS the province had promised to consider deleting the said requisition from the other assessment classes;
THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties request the Government of Alberta to delete the provincial school property tax requisition from assessment class one residential, class two non-residential and class three farmland.
The Municipal Government Act Amendment Act (Bill 34), 1996 gave the province the legal authority to set a separate mill rate on the machinery and equipment assessment class. Under a phase-out plan, the provinces tax on M&E was unconditionally reduced by 20% in 1996 and by a further 20% in 1997 and the remaining 60% (for total elimination) in 1999. The tax change was a clear signal that government is committed to improving Albertas corporate tax competitiveness and building on the Alberta Advantage. Agriculture has been proclaimed by municipalities and the provincial government as Albertas number one industry in both revenue and job creation. Unfortunately, one of the largest capital costs for agriculture are land costs which must pay the provincial school property tax requisition while the largest capital cost for corporations is machinery and equipment which do not pay the school requisition. Why would all sectors of the agricultural industry not receive the comparable Alberta Advantage as manufacturers, oil and gas refineries, petrochemical plants, etc.? In addition, the elimination of the school requisition from class one residential, class two non-residential and class three farmland, would provide all sectors of Albertas economy to have more disposable income to further increase the purchase of goods and services to promote the Alberta Advantage.