Massive taxation increase coming

[Ken07AOVette]

https://www.vermilion-river.com/mrws...ia_Release.pdf

Impacts of Assessment Model Changes on the County of Vermilion River
County of Vermilion River, Kitscoty, AB – The County of Vermilion River was notified this week of
changes proposed by the Province of Alberta to reduce the property tax of oil and gas
companies through changes to the assessment model for regulated properties in this sector.
Council and administration are extremely concerned about the serious impacts of this
decision because it will mean an increase in residential property tax, reduction of
services, or combination of both to make up for this lost revenue.
While the stated intention of this decision is to increase the competitiveness of oil and gas
companies in this difficult economy, these changes will disproportionately benefit multinational
oil and gas companies and harm smaller companies and residential ratepayers.
In addition to this, there are no regulations to ensure that this money from the reduction in taxes
will be spent in Alberta to improve the struggling oil and gas sector here. For these reasons there
seem to be few benefits to outweigh the added costs that county residents will be faced with.
Based on the information provided to the County of Vermilion River from the Province, the
impacts to the County of Vermilion River could indicate a loss of up to 9% of tax revenue, which
equates to a loss of up to $3.9 million in overall lost revenue for the County of Vermilion River in
the first year.
To compensate for the loss of industry assessment and corresponding tax revenue, the County of
Vermilion River will have to adjust operations in one or a combination of the following:
 Increase the Residential Mill Rate up to 109.6% AND/OR
 Increase the Non-Residential Mill Rate up to 25.9% AND/OR
 Cut services by up to 45.2%
If this proposed change is passed YOU WILL BE
IMPACTED – financially through property taxes
and in a loss of services from the County of
Vermilion River. Many services provided by the
County would need to be eliminated, County
support of other municipalities or organizations
will have to be decreased or terminated, and
there would be an increase in property taxes for
residents and businesses in the County.


This is 109%, the MD of Wainwright is forecasting a 393% increase.

http://www.mdwainwright.ca/

Paying $3000 now in property tax means $14790.00 on the next tax roll?

All this means is some very rich realtors are going to grab properties when people are unable to pay over $1000 a month on property tax.

M.D. of Wainwright Stands To Lose 10 Million Dollars

The M.D. of Wainwright No. 61 is extremely concerned with and opposed to the changes to the assessment model for regulated properties such as wells and pipelines that was announced recently. This adjustment will affect the linear assessment within the M.D. of Wainwright. We have been told this is to enhance industry’s competitiveness. The M.D. of Wainwright is in support of industry in the area, but this change in assessment will jeopardize Rural Alberta.

The assessment model is the method the province gives municipalities to raise revenues through taxation. Based on the potential changes presented by the province, the M.D. of Wainwright is poised to lose between $9,453,925 and $6,979,777, or between 30% and 22% of our total tax revenue. To offset this loss the M.D. of Wainwright could be required to increase the residential tax rate by between 290% and 393% and increase the non-residential tax rate by between 37.4% and 58.4%. Raising tax rates to off-set the impacts of the assessment model change will have the effect of simply transferring taxes from industry to other businesses and residents. This draconian change to the assessment model will force municipalities to enact a reduction in service levels and intermunicipal collaboration agreements, as the above increases are not realistic for our ratepayers. These changes will impact not only our municipality, but the entire region.

In addition, municipalities requisition amounts for schools and senior housing using the assessment model. Those rates will also need to be adjusted going forward to offset the revenues lost, or those services will be reduced.

There is no guarantee that the tax savings experienced will be put back into the local economy, as a majority of the benefit will profit global companies and their shareholders, not M.D. of Wainwright residents. This is in direct contrast to what a municipality does, which is work hard to keep dollars in our community.

The M.D. of Wainwright is giving you all this information in hopes you will be able to help us save Rural Alberta. Once this legislation is passed, we are heading down a path that will result in the decay of a viable Rural Alberta. We have been told we have until the middle of August to voice our displeasure.

For more information please contact the M.D. office at 780-842-4454 or visit our website at www.mdwainwright.ca where council member contacts and staff contacts are posted.

Sincerely,

Municipal District of Wainwright No. 61 Council

This needs to be fought.


What are we doing?
The County is contacting Premier Jason Kenney, Municipal Affairs Minister Kaycee Madu, Energy
Minister Sonya Savage and MLA Garth Rowswell to express our concerns over these changes.
The County is also supporting neighbouring municipalities and the Rural Municipalities of Alberta.
What can you do?
 Please let your government officials know your thoughts on this issue.
o Premier Jason Kenney
780.427.2251 premier@gov.ab.ca
o Minister of Municipal Affairs, Kaycee Madu
780.427.3744 minister.municipalaffairs@gov.ab.ca
o Minister of Energy, Sonya Savage
780.427.3740 minister.energy@gov.ab.ca
o MLA Garth Rowswell
780.842.6177 vermilion.lloydminster.wainwright@assembly.ab.ca
 Please call your local Councillor if you have questions about this or want additional
information. A list of Councillors can be found on the County website.
 Read the RMA position paper on this Assessment change under Summary Document
and Position Statement.
The final decision by the Government of Alberta and Premier Jason Kenney on this proposal is
expected by mid to late August so we encourage you to take action now.
Dale Swyripa, Reeve
County of Vermilion River
- 30 -
Media inquiries may be directed to:
Communications
County of Vermilion River 780.846.2244 communications@county24.com

[58thecat]

brutal.

[W921]

I guess cutting their spending was never an option?

[32-40win]

Were you expecting something different? The loss of revenue in this province from O&G is going to start showing in all the new budgets of all the cities, towns and counties in this province. Then in the federal fall budget, be looking for taxes added from every direction under the sun, probably with GST as well.

[Smoky buck]

That is brutal but not surprising both the province and country are in rough shape economically

We are going to see more tax hikes in the future for the rest of Alberta and Canada too

[Who Da Fisherman]

Received the same thing for Wetaskiwin County
grrrrrr
WDF

[trigger7mm]

County of Flagstaff is saying the say bulls..t! Brutal, especially considering the way they blatantly waste money here.

[Ken07AOVette]

There are going to be people that have to take out mortgages on paid for homes to pay for property tax.

This will fall on everyone's shoulders, and then they will have to change the way rental properties are managed, so that the increase in tax is covered by the renter, which now is not possible because you can only raise rent so much per annum.

I forsee a lot more burnt properties and huge insurance claims with no new houses being built.

[58thecat]

Originally Posted by Who Da Fisherman

Received the same thing for Wetaskiwin County
grrrrrr
WDF

https://lakelandconnect.net/2020/08/...sment-changes/

here too

[ghostguy6]

Trudope has to get all the money he sent to Lebanon from somewhere.....

[AndrewM]

Calgary is going the same way. They all have spending problems rather than income problems!

[Ken07AOVette]

Maybe just not make a few of the half billion dollar promises all over the planet for a little while and look after our own.

Crazy, I know

[Hawkeye]

I forsee a lot more burnt properties and huge insurance claims with no new houses being built.[/QUOTE]

Ken
Not trying to pick a fight with you, but my understanding is that most house insurance requires a rebuild in order to collect. If you don't rebuild, you might, at best, get fraction of the value.

I realize that your comment reflects how serious and devastating this will be for a lot of folks, and I absolutely agree with that sentiment. These are really challenging times, we are a long ways from being free from the direct effects of this virus and there will be many more consequences and difficulties in the future.

[Pathfinder76]

But if it saves just one life..........

[MoFugger21]

Yep, Vulcan County just started up their media campaign against this a few days ago. Though the potential tax increases in our county aren't as drastic as what Wainwright is looking at, this has the potential to have a huge impact on municipalities all over Alberta.

Kenney and Co has decided to give their buddies in oil & gas another break on the backs of rural Alberta. Between oil and gas companies just packing up shop and leaving county's and MD's holding the bill in bad debt, to changing this assessment model.... This is disastrous if it goes through.

https://www.vulcancounty.ab.ca/news-...G_oAzgQK1lFJuo

[Buckhead]

Wait until the other shoe drops and the Feds raise the GST to 10% and put a 5% tax in the sale of a principal residence

[2011laramie]

https://www.rdcounty.ca/CivicAlerts.aspx?AID=1636

Red deer county too.

[Dean2]

That reminds me of and old bumper sticker, "Lord let there be another oil boom, I promise not to pee it all away this time".


I am not sure whether these numbers are real or greatly exaggerated as part of the scare campaign by the Municipalities to push back against the Provincial adjustments to the tax calculations. What this does clearly demonstrate is that Municipal, Provincial and even Federal spending is completely out of control. They have taken the revenue stream for Oil and Gas and made is a part of the base budgeting model. Every other Province in Canada has to make do with a property tax base comprised of residential and some commercial tax revenue. Their per capita budgets reflect that. What we need is massive spending cuts at the Municipal level, not massive tax increases to try and make up for the revenue that is going to disappear eventually anyhow. If you let your local councils get away with taking the easy way out and raise taxes you are going to suffer irreparable harm. How much money are we prepared to let the various levels of government flush down a drain.

[Ken07AOVette]

Originally Posted by Hawkeye

Ken
Not trying to pick a fight with you, but my understanding is that most house insurance requires a rebuild in order to collect. If you don't rebuild, you might, at best, get fraction of the value.

I realize that your comment reflects how serious and devastating this will be for a lot of folks, and I absolutely agree with that sentiment. These are really challenging times, we are a long ways from being free from the direct effects of this virus and there will be many more consequences and difficulties in the future.

Nope. They will gladly pay a lesser amount, and then not have to deal with contractors or liability. $650,000 for house and contents or $380,000 cash settlement and wash their hands?

Where do you think they swing?

[Grizzly Adams]

I think we're all going to get a shock shortly, Kenney is laying more and more of the financial burdens on the municipalities. Where's the Alberta Party, they have a golden opportunity here going to waste ?

Grizz

[gman1978]

Originally Posted by Ken07AOVette

There are going to be people that have to take out mortgages on paid for homes to pay for property tax.

This will fall on everyone's shoulders, and then they will have to change the way rental properties are managed, so that the increase in tax is covered by the renter, which now is not possible because you can only raise rent so much per annum.

I forsee a lot more burnt properties and huge insurance claims with no new houses being built.

Agreed, we will end up like parts of Europe that are taxed so bad that homes sell for a dollar because the tax valuation is so high no one can afford it. This could kill the acreage market like what happened in the 80's.

Counties and Municipalities have been immune to the cuts and have been getting away with huge waste as other levels of government have made cuts. Not to mention the private sector ( unless you are selling recreation vehicles and fifth wheel trailers then its boom time LOL!!) Looks like they want to push cost on the taxpayer and not make some tough decisions.

[Bigwoodsman]

Since I can remember I've always been a staunch supporter of the Conservatives in Alberta. Peter Lougheed, Ralph, Don Getty, Ed Stelmac. After Ed, the leadership became week and still is under Kenney.

Maybe its age, but Kenney isn't doing the things he said he'd do. Oh he's talking the talk, but he is definitely reducing our standard of living while doing nothing to improve the province. He is small minded, in developing coal in the west country, he is small minded in giving huge corporation property tax breaks while downloading these on to Districts and counties, who have no choice but to increase mill rates and property tax.
Instead of sending 20 BILLION dollars a year in transfer payments to Ottawa, he does nothing to keep that money here or any of it. Just lets it flow east.

Imagine what a province with an extra 20 BILLION in TAX REVENUE could do for its populace.

The UCP aren't our saviours.

BW

[59whiskers]

Kenny did one good thing. The safe dope consumption site in Lethbridge got funding shut down. The easy ride for lots of people is coming to a end.

[HyperMOA]

What isn’t being said is that most counties are having budget problems right now. Their revenues are way off to begin with so even if Kenney does nothing they are facing HUGE shortfalls regardless. I’d be interested if any county will guarantee no tax hikes if this is left alone. They were planning a huge tax hike regardless. This just makes Kenney the boogeyman instead of them.

Kenney hasn’t even said he is going to do anything. He is just pointing out that other jurisdictions have lower rates and many companies are going insolvent which ends up netting zero taxes. He hasn’t proposed a thing and wainwright already knows taxes need to be raised 400%????? Get real!!! They were planning that before Kenney stepped into their minefield. That’s is just a fortunate coincidence for them.

[JohninAB]

Yellowhead County has also stated residential property taxes will have to go up substantially or services reduced if Kenney puts his proposed tax plan thru.

[DougC]

Originally Posted by ghostguy6

Trudope has to get all the money he sent to Lebanon from somewhere.....

Yep, this is 100% Trudeau and Notley!!! Go team blue!!!

[Sloughsharkjigger]

Will certainly be interesting... first world comfort will soon be out of reach for the vast majority. Not much out there that can turn this around. Can not continue to print out money for people to spend on the hopes of propping up the economy. On paper, the worlds wealth is in trouble. The system is in serious trouble. What will the reset look like... anybody’s guess but taxation is a short term solution.

[CBintheNorth]

Wait, wait, wait, wait Ken.

So 9% of their revenue equals 45.2% of their services?

That would mean the cost of ALL services provided is roughly $8,500,000, and their total intake is roughly $43,333,000.

That would also mean overhead and other fixed costs is roughly $34,843,000.

Yikes.

[dth_]

This is the municipalities trying to strong arm the province at the expense of the tax payer. Its a win-win for them, either the province backs down or the municipalities murder people with taxes and say "look what kenney made us do!" and still not have to cut anything.

My councilor would be getting a bag of flaming dog crap on his door step once a week until they went back to the drawing board and came back with something a little more creative than a 300% tax hike.

[Ken07AOVette]

Fairly coincendantal that we just got the assessment notice a few weeks ago. This has been in the works for a while.