A 10-year-old infrastructure bylaw is creating problems for a new landowner in the Municipal District of Opportunity.

During the July 27 regular council meeting in Sandy Lake, Councillor Darlene Jackson raised a concern about a ratepayer who recently bought a vacant lot. The new owner was surprised to find a $5,000 tax charge tied to the property.

Chief Administrative Officer (CAO) Chad Tullis told council the tax bill comes from a local improvement bylaw passed in 2015. Back then, the municipality spent $2 million to install new paving, sidewalks, and curbs in that subdivision.

Under the provincial Municipal Government Act, local improvement taxes allow a municipality to fund neighbourhood upgrades without charging all taxpayers. The local government pays the construction costs upfront. That money is then charged back over time to the property owners who benefit from the upgrades, added to their annual property taxes.

The issue is that this debt is legally attached to the land, not the property owner. When a lot is sold, the remaining debt transfers to the buyer. This can catch buyers off guard if they do not check the property’s tax certificate before closing the sale.

Jackson told council she feels it is unfair to hand a new buyer a large tax bill for a 10-year-old project, especially on an empty lot. She noted the original landowner was the one who benefited when the upgrades were done.

“The original owner is the one who benefited from the initial agreement when the infrastructure went in, not the person who is just buying the empty lot today,” Jackson said.

Tullis said changing an established tax roll is a complex process. Provincial law heavily regulates municipal taxes in Alberta, meaning local councils cannot easily erase a debt. If the M.D. decides to waive the fee, the remaining cost of the $2 million project would likely fall on the rest of the local taxpayers.

“Because 10 years have passed and a majority of the project is likely paid off, there could be a potential consideration to waive it,” Tullis said. “However, I just want to make sure that we are working strictly within our legal parameters.”

Administration is now talking with legal guidance to see if council has the authority to forgive or change the remaining fees for the new owner without breaking provincial rules.

Armaan Khanna 

Local Journalism Initiative Reporter