'It's not fair': Edmonton's mayor asks for residents' help to get province to pay $80M in taxes owed

Edmonton's mayor has launched a new campaign called the 'Fair Compensation Project,' directed at the Government of Alberta.

"The Fair Compensation Project will include advocacy on several ways that the City of Edmonton is not being fairly compensated for the services we provide," Mayor Amarjeet Sohi told reporters at a news conference on Tuesday.

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Over the next few weeks and months, information will be released on different areas Sohi said the province isn't paying its fair share – starting with "grants in place of taxes."

"Most people don't have a choice not to pay their property taxes but the Alberta government is choosing not to pay their fair share," Sohi said.

"Provincial buildings get the same quality of municipal services that all buildings receive, but they only pay half of the cost," he added.

According to the city, the province owes $80 million in property taxes dating back to 2019.

"It's not like we're going to stop shoveling snow at the legislature, it's not like we're going to stop picking up the garbage or policing the other government of Alberta properties," said Councillor Michael Janz.

"But it's incredibly frustrating when we are looking under every rock and stone to find resources to provide for Edmontonians, and the provincial government has abdicated paying their taxes," he added.

"It's not really something that you can tangibly feel," said Tom Vernon, a consultant with Crestview Strategy.

He said unlike changes to services like health care or education, unpaid property tax is a topic not many people talk about.

"It's very complicated," he said. "It requires an in-depth conversation, and people don't have time to have that in-depth conversation on something they can't really see."

Through the new campaign, the city hopes to make it clear how it impacts Edmontonians.

"The provincial government is asking other residents to cover their bill even though they're on track to post a $3-billion surplus this year," said Sohi.

According to the city, the $80 million in taxes owed is the equivalent of a nearly four-per-cent property tax cut or could help eliminate the city's deficit.

"If the province paid their property taxes, I would absolutely want to see that money applied to the tax levy to see a reduction," said Janz.

According to the Alberta Department of Infrastructure, there are 248 buildings within the city that are owned by the province.

Sohi said if the government paid its taxes every year, it would mean about 0.8-per-cent tax relief for Edmontonians.

"It's not fair to other property owners in the City of Edmonton that they have to fill the gap of close to $50-million to $60-million every year that the province should be paying," he said.

Heather Jenkins, the press secretary for Ric McIver, Alberta's minister of municipal affairs, said there have been meetings with the mayor to discuss funding requests and about Grants in Place of Taxes (GIPOT).

"After years of work with municipalities, Alberta's government continues to implement the local government fiscal framework through Budget 2024 that provides stable, predictable funding for municipalities, including $337 Million over two years to the City of Edmonton," Jenkins said in a statement.

She said Budget 2024 is also providing funds for several capital projects in Edmonton.

"Providing $2.2 billion over three years in road, transit and bridge construction projects and an additional $800 million over the next three years for health, school and government facilities," Jenkins added.

However, Edmonton's mayor said there's a long history of underfunding from the province.

"We will highlight how provincial grants to municipalities, particularly Edmonton, has continued to decline from 2008 to 2024," said Sohi.

A few examples the mayor provided is that maintenance of provincial roads in Calgary is covered by the province while Edmonton is stuck with a "$17-million ongoing cost" for its provincial roads.

He also said the city is forced to pay more in areas like policing, fire response to overdose calls and transit security, which are a direct cause of inadequate funding in services the province is responsible for.

"I want to be clear, we are not asking for a special deal," said Sohi.

"All we're asking is for the Government of Alberta, please step up to pay your taxes, please step up to do your job in areas that you are responsible for such as health care, such as mental health, such as addictions and recovery," he added.

"I think when you look at the rhetoric from the premier on this topic, she knows it's unfair. She can't dance her way out of it," said Janz.

The mayor hopes the Fair Compensation Project will generate support from the public.

"There's a real impact on Edmontonians, and that's why I'm calling on Edmontonians to engage with the provincial government, send a letter to the premier, send a letter to Minister McIver," he said.

"I need your help to make sure the province hears our message."

Without a UCP MLA in Edmonton, Vernon believes getting the public on board is a good strategy.

"Will it work? This is a province with a lot of priorities and not looking to spend more money, they're looking to save money, so we'll see where it goes," said Vernon.

Edmonton isn't the only one campaigning for government action.

The Rural Alberta Municipalities (RMA) has launched its own campaign called Below the Drill.'

Over the past three years the RMA said changes to provincial policy and inaction have "stripped" municipalities of $332 million in vital municipal tax revenue.

The organization said the policies introduced to offset pandemic impacts and reduce costs for the oil and gas industry have since left many municipalities struggling.

"We understand the importance of supporting the industry, but these policies seem to be designed solely to cut costs for oil and gas companies, without consideration of how they may erode the very communities that help drive Alberta's economy," said RMA President Paul McLauchlin.

The RMA said change is needed to ensure the "long-term viability of rural Alberta." 

With files from CTV News Edmonton's Nicole Wesiberg