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Alberta Court of Appeal upholds Lethbridge County Business Tax

Jan 19, 2019 | 11:32 PM

LETHBRIDGE —  A decision by Lethbridge County to amend a business tax bylaw to help maintain county roads and bridges has been upheld by the Alberta Court of Appeal

In April of 2016, County Council approved an option to phase in a tax that would collect about $3.5-million a year to help cover the costs of repairing roads and bridges that were damaged and worn down by heavy use, predominantly by the agriculture industry. Several roads and bridges had deteriorated to the point of closure due to age and heavy use by commercial vehicles.

County Reeve, Lorne Hickey, said the measure was necessary, due to a lack of consistent funding from the provincial government.

 In 2016, only 75 per cent of the tax required would be collected, lowering the business tax on animal units to $3.00. The special tax applied to dryland and irrigated farmland assessment would see a tax rate of 4.4140. The revenue generated from the CAP levy was based on a rate of $0.25 per tonne.

That same year, a group of county feedlot operations opposed the tax and took their case to court, asking that the Business Tax – $3 per head in 2016 and $2.50 in 2017 – be found invalid. The group behind the application consisted of Van Raay Paskal Farms Ltd., John Schooten and Sons Custom Feedyard Ltd., Grandview Cattle Feeders Ltd., G. Thompson Livestock Co. Inc., 6a Cattle Company Ltd., Adrian Dewilde, K. Wever & Sons Farms, Monarch Feeders Ltd., 589494 Alberta Ltd.

However, in April of 2017, Justice Rod Jerke found the per-animal-unit tax to be legal, leaving the feedlot operations to appeal that decision.

On Friday, January 18, Lethbridge County received a decision from Alberta’s Court of Appeals that the Business Tax would be upheld and could continue to be collected annually to fund road and bridge projects in the County.

County Reeve, Lorne Hickey, was pleased with the court’s decision.

“Today’s decision will allow Lethbridge County to continue the work we have started and ensure our infrastructure is safe and reliable, and that our producers can get their products to market.  The Business Tax enables Lethbridge County to continue to fund these necessary improvements to our roads and bridges for our citizens and business owners.”