City Notebook: Counties facing property tax pickle of a lifetime
By COLLIN GALLANT on August 15, 2020.
cgallant@medicinehatnews.com@CollinGallant A lot of people have a lot of ideas about how property tax bills should work. Without fail that accompanies a deriding of the archaic-seeming system of assessing property values and sending out a bill. It’s a pastime to talk about real estate values, look at the tax bill and exclaim, “Wha?!” To this point it’s basically been academic (as property values don’t really matter, budget size and tax rates do), but it’s often bandied about, though seemingly never goes anywhere. However, the thread has been pulled on linear assessment in Alberta. The province is doing a re-examination of complex assessment formulas for gas wells, pipelines, etc. It could just be the start of rethinking a property tax system that faces bigger problems than modifiers buried deep in encyclopedic assessor’s manuals. The basic stability of the oilpatch in this province, which for years has by clockwork paid a big portion of rural taxes, and their demand to a government willing to listen that it’s an issue of basic logic and fairness that near worthless wells shouldn’t have big tax bills, created a major problem. This month, Alberta’s county officials, which are probably the truest, bluest group of grass-root conservatives you’ll get, are protesting options to change tax calculations for wells and other infrastructure. They go as far to say decreases of nearly $500 million per year across Alberta will essentially bankrupt rural municipalities or foist a doubling or tripling of tax bills on other taxpayers. The government, which has yet to back down on just about anything, says updates are required but they are seeking balance when the regulations are finalized, potentially this fall for next year. Particularly exposed in general are Cypress County and County of Newell, which face the evaporation of shallow gas sector in an era of low prices. Damned if you do (usher in tax breaks to aid a failing industry), or damned if you don’t (hasten its decline and wind up with the same problem, namely no tax income). And if you don’t think un-incorporation could happen, think again. Cypress County was Improvement District No. 1 only 40 years ago. The too-small tax base, too small population base required Edmonton’s administration since the Great Depression. It’s why the Special Areas start at No. 2. And don’t be too smug urban Albertans. The inversion of the corporate vs. residential tax base in Calgary has been a horror show. Now, perhaps every city in Canada is facing some kind of tax base rebalancing from the work-at-home and shop-online movement hastened by the COVID pandemic. It’s a pickle with a capital “P.” As for the battle between two large factions of the United Conservatives’ support base, namely the oilpatch and rural landowners, it’s a whole other problem. “Is there enough thread and enough needle to make this go away?” asked political scientist David Taras in a column by Postmedia columnist Chris Varcoe. Speaking of Montana A huge controversy broke out Friday among Democratic and Republican gubernatorial candidates about the removal of mailboxes in rural areas. It’s seen as a way to affect mail-in ballots in the November election. Meanwhile in Canada, Conservative party members have spent the last month taking selfies in front of Canada Post boxes as they send off their party leadership ballots (that race concludes this coming week). A look ahead City council resumes Monday following the traditional summer break, which this year saw the first meeting in August cancelled. 100 years ago The head of a British investment group behind a 50,000-acre irrigation scheme near Medicine Hat suggested the Canadian government should purchase the project, the News reported on July 29, 1920. Sir. Charles Hobson, chairman of the Canada Land and Irrigation Co., made a first visit to Canada for a personal inspection of the lands, which had seen $13 million in investment since 1912. Alexandra High School principal D.M. Sullivan told the News that he would personally evaluate any student wishing to attend the high school who had previously been rejected based on their marks. “The high school is designed to turn out men and women able to think for themselves,” read an accompanying article. “To attain this end, however, students and parents must accept their share of the responsibility.” Famed international financer Charles Ponzi would create a new company in Boston to trade in European bonds, vowing that he could turn a $10,000 investment into $400,000 return in 30 days. Collin Gallant covers city politics and a variety of topics for the News. Reach him at 403-528-5664 or via email at cgallant@medicinehatnews.com 32-31
