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Alberta

Close contact businesses to be closed – Gatherings no larger than 15 people – Protection for renters

Published

4 years ago

17 minute read

From the Province of Alberta COVID-19 Update – March 27

Additional restrictions to stop spread of COVID-19

To protect the health and safety of Albertans, mass gatherings will be limited to 15 people and more restrictions will be placed on available services.

As a result of the evolving COVID-19 pandemic, attendance at certain businesses and organizations across the province will be prohibited effective immediately.

“This was a difficult decision to make, but we must do everything we can to protect the safety of Albertans and limit the spread of COVID-19. Grocery stores, pharmacies, delivery services and other essential businesses will continue to provide Albertans with the goods and services they need, and we’ll look to Alberta’s business leaders to find innovate ways to continue remote operations and protect jobs. These businesses must do everything they can to safeguard the well-being of the hardworking employees on the front lines.”

Jason Kenney, Premier

Restrictions will be in place for the following classifications of business:

  • Close contact businesses including hair salons and barbershops, tattoo and piercing studios, esthetic services, as well as wellness studios and clinics and non-emergency and non-critical health services provided by regulated health professionals or registered professionals including dentistry, physiotherapy, massage, podiatry, chiropractic and optometry services.
  • Dine-in restaurants will no longer be able to offer dine-in service. Take-out and delivery services will continue to be available.
  • Non-essential retail services that fall into the categories of clothing, computer and gaming stores, and services in shopping malls and shopping centres such as hobby and toys, gift and specialty items and furniture.

A more complete list of affected businesses is available online.

In addition, people are prohibited from attending gatherings of more than 15, and they must observe two metres of social distancing. This includes:

  • open spaces such as trails, fields and parks
  • public and private gatherings where people are brought together in a single room or space at the same time, including funerals, weddings and other formal and informal events

Further details on gathering restrictions are available online.

Workplaces that have not been ordered to close can continue to have more than 15 workers on a worksite as long as those business maintain public health measures, including two metre social distancing, hygiene enforcement and processes that ensure that any person who is ill does not attend these spaces.

“These are aggressive measures and we don’t take them lightly. We need to do everything we can to flatten the curve and keep people healthy. I strongly encourage all Albertans to stay close to home as we are all in this together. Our collective action will protect our family, friends and neighbours.”

Dr. Deena Hinshaw, Chief Medical Officer of Health

Any business or organization not following the public health order will be subject to a fine. Courts have the power to administer fines of up to $100,000 for a first offence and up to $500,000 for a subsequent offence for more serious violations. Individuals aware of any businesses violating these orders should submit a complaint online immediately.

Quick facts

  • All Albertans have a responsibility to help prevent the spread. Take steps to protect yourself and others:
    • practise social distancing
    • stay home and away from others if sick or in isolation
    • practise good hygiene – wash hands often for at least 20 seconds, cover coughs and sneezes, and avoid touching your face
    • monitor for symptoms, such as cough, fever, fatigue or difficulty breathing
  • Anyone who has health concerns or is experiencing symptoms of COVID-19 should complete an online COVID-19 self-assessment.
  • For recommendations on protecting yourself and your community, visit alberta.ca/COVID19.

Increased security for Alberta renters

The Government of Alberta is providing security for Alberta residential renters during the COVID-19 pandemic.

This is part of an overall $7.7-billion package in direct supports and deferrals designed to relieve the immediate financial burden brought on by the crisis and provide stability during these unprecedented and uncertain times.

The new protections mean:

  • Effective immediately, tenants cannot be evicted for non-payment of rent and/or utilities before May 1.
  • Effective immediately, rents will not increase while Alberta’s state of public health emergency remains in effect.
  • Effective April 1, late fees cannot be applied to late rent payments for the next three months.
  • Effective April 1, landlords and tenants need to work together to develop payment plans while the state of public health emergency is in effect.

“We want to be clear: As of today, no one will be facing immediate eviction from their home for non-payment of rent or utilities owed to the landlord. Additionally, tenants will not face increasing financial pressure from rent increases or fees for late rent payments. We are expecting landlords and tenants to work together to figure out payment plans that help everyone meet financial obligations as we manage COVID-19, and we are doing further policy work on support for renters during these tough times.”

Jason Kenney, Premier

“We’ve been listening to the financial concerns of landlords and tenants and these measures protect Albertans and give them time to get back on their feet. This is more practical relief from the immediate financial pressures on Albertans – on top of emergency isolation supports, deferrals of utility bill and student loan payments, an education property tax freeze, and ATB Financial mortgage deferrals.”

Nate Glubish, Minister of Service Alberta

Payment plans and eviction process

While Alberta is in a state of public health emergency, landlords must attempt to work out a payment plan with tenants who are unable to make their full rent when payment is due. The Residential Tenancy Dispute Resolution Service (RTDRS) will not hear applications that could lead to eviction due to non-payment unless a reasonable attempt has been made to work out a payment plan.

Rental increases

Until the state of public health emergency has been lifted, landlords cannot raise the rent on residential properties or mobile home sites, even if notice of an increase has already been given.

Late fees

Until June 30, landlords cannot further penalize tenants who are late on rent by charging late fees, even if the signed rental agreement states that a late fee can be applied. Landlords will also not be able to retroactively collect late fees for this period.

“As housing providers, we fully support our provincial leaders, so together, we can support all residential renters in Alberta affected by COVID-19 and continue to provide the essential service of a safe, healthy and peaceful place to call home through flexibility and mutual resolve. Together, we will all get through this.”

Sam Kolias, chief executive officer, Boardwalk

“The government’s plan to offer rental protections to people unable to pay their rent due to the COVID-19 pandemic, to me, seems like an excellent step forward in battling this public health crisis. Helping Albertans by not allowing evictions next month and asking landlords to create payment plans with tenants will save great suffering and will prevent a worsening of the pandemic.”

Leif Gregersen, renter

Quick facts

  • These protections are required by new ministerial orders under the Residential Tenancies Act and the Mobile Homes Sites Tenancies Act.
  • Landlords can still file applications and receive orders for possession if the reason for the eviction is unrelated to rent and/or utility payments (e.g. safety concerns, tenant engaging in criminal activity).
  • The $7.7-billion supports package includes:
    • Health-care funding: $500 million
    • Emergency Isolation Support: $50 million (one-time payment $1,146)
    • Community and Social Services funding: $60 million total
      • Adult homeless shelters: $25 million
      • Women’s emergency shelters: $5 million
      • Community-based organizations: $30 million
    • Freezing education property taxes: $87 million
    • Student loan interest waived for six months: $45 million
    • Employment standards: 14 days of job-protected leave if directed to self-isolate
    • Two-month extension of driver’s licence, vehicle registration and ID card expiry date: up to $60 million
    • Alberta student loan deferral: $148 million
    • 90-day utility deferral program
    • ATB Financial customer relief program: total loans to consumers and businesses that qualified for deferrals – $3.6 billion to date
    • Government to pay 50 per cent of WCB premiums for small and medium-sized businesses: $350 million
    • Six-month education property tax deferral for businesses: $458 million
    • Government to pay Alberta Energy Regulator industry levy for six months: $113 million
    • Corporate income tax payment deferral to Aug. 31 interest-free: $1.5 billion
    • Workers’ Compensation Board premium payment deferral: $750 million
    • Extensions for oil and gas tenures extending the term of mineral agreements expiring in 2020 by one year
    • Two-month extension of filing deadline for annual returns with Alberta Corporate Registry: up to $6.3 million
    • Defer tourism levy for hotels and other lodging providers until Aug. 31: Frees up more than $5 million for employers

Alberta has a comprehensive response to COVID-19 including measures to enhance social distancing, screening and testing. Financial supports are helping Alberta families and businesses.

Notes from Flight 163, the oilsands shuttle from Toronto to Edmonton

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After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

Published on April 23, 2024

By

From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

Author:

Tegan Hill
Associate Director, Alberta Policy, Fraser Institute
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Alberta

Province to stop municipalities overcharging on utility bills

Published on April 22, 2024

By

Making utility bills more affordable

Alberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees.

Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees.

Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities Act, Government Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable.

Quick facts

  • Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
    • The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.
  • Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
    • The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
    • The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.
  • Local access fees are usually calculated in one of two ways:
    • (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
    • (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).
  • Calgary is the only municipality that employs a two-part fee calculation formula:
    • 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

Related information
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