Leah HennigIf someone owned a home and simply decided not to pay their taxes, they’d face consequences. That could include fines, jail time, or seizure of their property. But when the Government of Alberta doesn’t pay its taxes, it gets to go on with business as usual. And Edmontonians are the ones who face the consequences.
The City of Edmonton found that it’ll be facing an $88 million budget shortfall. Meanwhile, the province owes Edmonton $80 million in property taxes. On top of that, the city has paid another $28 million responding to medical emergencies that aren’t its responsibility. The unpaid property taxes and cost of responding to medical emergencies adds up to $108 million, more than the gap the city is facing.
Asking the provincial government to give the city what it’s owed isn’t an outrageous ask. Especially considering the province ended the fiscal year with a $4.3 billion surplus. It has the money to pay its taxes and it has the responsibility to do so. Not doing so would hurt Edmontonians, which are still Albertans.
It would be utterly bizarre for the provincial government to sit back and watch property taxes increase while the government itself owes $80 million in those same taxes. The outstanding taxes never should have reached $80 million to begin with. But in the face of a huge budget shortfall for Edmonton, the province needs to pay up.
Unpaid taxes aren’t the only issue here. Edmonton Mayor Amarjeet Sohi has said the Edmonton Fire Rescue Service (EFRS) has spent $28 million responding to medical emergencies. It should be Alberta Health Services (AHS) responding to those calls, not the EFRS. It’s the province’s responsibility to fund AHS’ emergency responses and it’s not the city’s responsibility to make up for it when the province doesn’t. Paying to respond to medical emergencies puts more strain on the city’s already strained budget.
For years the province hasn’t supported AHS in improving its services. And now the provincial government is breaking AHS up into different organizations. After continuous underfunding and chaos caused by the provincial government, it’s no wonder EFRS has had to pick up the slack. But that doesn’t mean it should have to and it definitely doesn’t mean Edmontonians should foot the bill. But the consequences of irresponsible decisions by the province means that Edmontonians will likely continue to.
If the provincial government properly supported and funded AHS, it could take off some of the strain on the city’s budget. That, along with paying its property taxes, could give the City of Edmonton the relief it needs. And in turn, Edmontonians wouldn’t have to face higher taxes or cuts to their services.
If property taxes in Edmonton are raised even more, homeowners and businesses will suffer for it. People are already struggling to cover their basic costs. Even if someone is renting, landlords often pass the cost of property taxes on to tenants anyways. Businesses are still recovering from the COVID-19 pandemic. Edmontonians are already dealing with the cost of services increasing, including transit fares.
I’m confused about who the provincial government is helping by withholding its taxes, but it’s clear who it’s hurting. It can’t celebrate a budget surplus in the billions while not paying its taxes and for its responsibilities. Edmontonians shouldn’t have to pay the province’s bills and suffer for it.
