Cypress County officials reiterate desperate need for pause on tax changes
By COLLIN GALLANT on September 4, 2020.
cgallant@medicinehatnews.com
Cypress County officials are again calling on the province to press “pause” on linear tax changes they say would threaten the viability of the county’s budget.
The statement released on Wednesday comes after a mass meeting of local government officials across southern Alberta with new Minister of Municipal Affairs Tracy Allard and area MLAs.
Counties raised the alarm in late July saying that options to change how oilpatch infrastructure – like wells and pipelines – is assessed would cut tax revenue by millions of dollars and put some rural governments in serious financial jeopardy.
Cypress County Reeve Dan Hamilton attended the meeting and stated that he appreciated the meeting, but the potential changes that could reduce Cypress County tax revenue by up to 20 per cent, should be reviewed further.
“These proposals put the viability of Cypress County at serious risk,” he said. “The minister made time to hear from us and understand our concerns. We know that every county in Alberta is facing similar potential impacts, so we are not alone.”
A major meeting was held on Tuesday between Allard, at least five government MLAs from the region, and dozens of county elected and administrative officials. That included representatives from Cypress County, the counties of Forty Mile, Lethbridge and Warner, and others in southern Alberta.
Ministry officials have said the issue could move to a final decision this fall following consultation with municipalities. Allard took over the portfolio last week from new Justice Minister Kaycee Madu.
In the early summer, ministry officials laid out four possible options for assessment formula changes on oilpatch infrastructure that the industry says has been over taxed for years considering low commodity prices.
The Rural Municipalities Association, which advocates on behalf of counties and municipal districts, said the worst case scenario could mean a near $500 million per year drop in tax revenue across Alberta.
Eleven counties would see their tax base shrink by 20 per cent, including Cypress County, where the most substantial assessment change would equate to a $7.8-million decrease in revenue.
Balancing the budget in that case would require a doubling of tax rates on farm, residential and commercial classes, as well as undisclosed budget cuts, officials state.
The change would also mean a $7.2-million and $11.6-million loss in the County of Newell. The M.D. of Taber expects the lost revenue to be between $3.1 million and $4.1 million.
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