+ RMA Rural Municipalities
of Alberta

Resolution 8-19S

Reinstatement of the Municipal Officer’s Expense Allowance

Date:
March 20, 2019
Expiry Date:
April 1, 2022
Active Status:
Active
Sponsors:
Clearwater County
District:
2 - Central
Year:
2019
Convention:
Spring
Category:
Other
Status:
Sent to Government
Vote Results:
Carried
Preamble:

WHEREAS until the 2019 tax year, a municipal corporation or board could pay a non-accountable expense allowance to an elected officer to perform the duties of that office; and

WHEREAS until the 2019 tax year, if the municipal officer’s expense allowance was not more than one-third of the officer’s salary and allowances it was not required to be considered as “employment income” on the employee’s T4 slip; and

WHEREAS federal Bill C-44, which received Royal Assent on June 22, 2017, eliminated tax exemption allowances for members of legislative assemblies and certain municipal officers; and

WHEREAS the municipal officer’s expense allowance tax exemption was a tool that assisted municipalities in keeping municipal council honorariums lower, thereby having less impact on the local taxpayers; and

WHEREAS the elimination of the municipal officer’s expense allowance has required many municipalities to increase municipal officers’ compensation to offset the difference in compensation, thereby increasing the tax burden locally;

Operative Clause:

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta requests that the Federation of Canadian Municipalities ask the Government of Canada to consider reinstating the municipal officer’s expense allowance.

Member Background:

Government of Canada – Municipal officer’s expense allowance:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/municipal-officer-s-expense-allowance.html

Bill C-44: http://www.parl.ca/DocumentViewer/en/42-1/bill/C-44/royal-assent

Federation of Canadian Municipalities: Change in “One-Third” Federal Exemption for Elected Officials – A Guide for Canadian Municipalities https://auma.ca/sites/default/files/fcm_taxexemption_guide.pdf.

RMA Background:

RMA has no active resolutions directly related to this issue.

Federal Ministries and Bodies:
Federation of Canadian Muncipalities
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