Restoring Provincial Grants in Place of Taxes (GIPOT) Funding
IT IS THEREFORE RESOLVED THAT Alberta Municipalities advocate for the reinstatement of full funding, at a minimum to the 2019/20 funding level of $60 million, for all properties that are eligible for GIPOT.
WHEREAS properties owned by the Government of Alberta are exempt from municipal property taxes, but the province provides a Grants in Place of Taxes (GIPOT) program to fund municipalities for the municipal services provided to provincial properties;
WHEREAS the Provincial budgets since 2019-2020 have made significant reductions in GIPOT funding to all municipalities across Alberta;
WHEREAS Budget 2024-25 has provided an increase of $2.1 million in the GIPOT funding to reflect the rising assessment and construction of new provincial government infrastructure;
WHEREAS despite increases in Budget 2023 and Budget 2024, GIPOT’s 2024 budget of $38.1 million is still well below past funding levels of $60 million before the province cut the program budget in 2019-20; and
WHEREAS these reductions have placed an unfair and disproportionate burden on municipal ratepayers.
The provincial government reduced the GIPOT program by 25% in 2019/20 and a further 25% in 2020/21, for a total reduction of 50% compared to 2019/20. The overall program funding reductions related to these changes in the 2019/21 provincial budgets were significant, impacting almost all municipal units in Alberta. GIPOT’s 2024 budget of $38.1 million is still well below past funding levels of $60 million before the program cuts by the provincial government in 2019/20.
Historically the revenue flows to the municipalities were based on the taxes the Crown would pay if the properties were not exempt from taxation. This change in funding has effectively downloaded costs to the ratepayers within the municipalities.
This gap in provincial funding points to the need for the province to recognize the essential role that the day-to-day municipal services play in supporting provincial building and properties.
Both Alberta Municipalities and the Rural Municipalities of Alberta have been advocating for a more equitable and fair funding of properties which fall under the GIPOT classification.
In Budget 2025, the province made a commitment to fully fund GIPOT within two years. In 2025, municipalities with provincial properties will receive funding equivalent to 75% of the assessed value and 100% of the assessed value in 2026.
ABmunis’ Rating of the Government’s Response
Accepts government response – no further action required.
ABmunis’ Notes and Actions
ABmunis has advocated on this issue since the funding cuts made in 2019. With the advocacy by ABmunis and many municipalities, ABmunis appreciates that the province has restored funding to the GIPOT program.