WHEREAS Part 10, Division 8 provides municipalities with the authority to collect tax arrears that relate to property taxes, local improvement taxes or special taxes as detailed under Section 382 of the Municipal Government Act (MGA); and

WHEREAS education funding is the responsibility of the Government of Alberta; and

WHEREAS Section 359, 359.1, 359.2 of the MGA delegates the responsibility to collect this education tax on behalf of the Government of Alberta; and

WHEREAS there are municipalities, towns and villages that are experiencing property tax arrears inclusive of tax revenues required to raise sufficient funds to pay the requisitions as per Section 359, 359.1, 359.2  of the MGA; and

WHEREAS the opportunity to include an allowance for non-collection of tax revenues for the purpose of raising funds to pay requisitions that are the responsibility of the Government of Alberta only places an unjustified burden of taxation on the property tax owners that keep their taxes current as well as placing an excessive strain on the cash flows of municipalities, towns and villages;

THEREFORE BE IT RESOLVED THAT the Alberta Association of Municipal Districts and Counties recommend the Government of Alberta repeal Section 359 (2) and (3) of the Municipal Government Act (MGA) and institute legislation in Section 359 enabling all municipalities, villages and towns to submit to the Government of Alberta for reimbursement of all uncollected current year taxes imposed to raise funds to pay requisitions on behalf of the Government of Alberta.  This payment to municipalities, towns and villages will replace any allowance for non-collection of taxes that municipalities must enact in order to collect requisitions that are the responsibility of the Government of Alberta.

Over the last several years, property tax arrears due to the Municipality of Crowsnest Pass have been cumulating with the Director of Finance confirming that there is $867,226.91 of property tax arrears due to the Municipality at December 31, 2011.  The collection of tax arrears resulting from the requirement to raise sufficient funds to pay the requisitions due to the Government of Alberta are approximately $260,000 of this outstanding amount and have placed an unjustified burden of taxation on property owners that keep their taxes current as well as placing an excessive strain on the cash flows of the Municipality of Crowsnest Pass.

The AAMDC has no active resolutions directly related to this issue.