February 24, 2011 No. 2011-06
	Highlights of the 2011 Alberta Budget Today Alberta Finance Minister Lloyd Snelgrove delivered the province’s 2011 budget. The budget anticipates deficits of $3.4 billion in 2011-12 and $681 million in 2012-13, and a surplus of $1.2 billion in 2013-14. The budget does not include any corporate or personal income tax changes. Highlights of other tax measures announced in today’s budget are summarized below. Business Tax Changes Tax exempt fuel use The Tax Exempt Fuel Use (TEFU) rebate for licensed vehicles, including Prescribed Rebate Off-road Percentages (PROP), will be eliminated, effective at midnight on February 24, 2011. The marked fuel (tax excluded) component of TEFU, the Alberta Farm Fuel Benefit, and the Alberta Farm Fuel Distribution Allowance are not affected by this change. Taxation of corporate groups The federal government is conducting public consultations on the taxation of corporate groups to examine the use of losses within corporate groups and options for a new system of group taxation. The budget notes that Alberta recognizes the policy concerns regarding the taxation of corporate groups and generally supports changes that will improve the efficiency of the tax system and enhance Canada’s international competitiveness. Alberta’s view is that any change to the taxation of corporate groups needs to produce a fair distribution of corporate income tax revenue among the provinces. Fees and Licences Changes User fees The budget increases fees for several items including corporate registries, land titles, motor vehicles and park campsite reservations, among others, effective April 1, 2011. The corporate registry fees for incorporations, registrations for extra-provincial corporations and amalgamations increase to $250 (from $100). There will be a $30 fee for annual returns. The flat fee portion of land title transfers increases to $50 (from $35). The fee for motor vehicle dealer plates increases to $185 (from $150). Vehicle registrations increase to $75 (from $61) and drivers licence fees increase to $75 (from $55). Property Tax Changes Education property tax Alberta’s education property tax mill rates will be reduced in 2011-12. The residential/farm property rate will fall to $2.70 (from $2.93) per $1,000 of equalized assessment. The non-residential rate will fall to $3.97 (from $4.31) per $1,000 of equalized assessment. We can help Your KPMG adviser can help you assess the effect of the tax changes in this year’s Alberta budget on your personal finances or business affairs, and point out ways to take advantage of their benefits or ease their impact. We can also keep you abreast of the progress of these proposals as they make their way into law and help you bring any concerns you may have to the attention of the Alberta Ministry of Finance.
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