Reeve described aggregate levy as ‘Just another tax on all the taxpayers’

Kneehill County council repealed a bylaw that placed a levy, or fee, on aggregate operations, commonly called gravel pits. The resolution was passed at the Feb. 24 regular meeting of council.

Councillors heard a presentation from Legislative Services Manager Carolyn Van der Kuil, noting they had previously discussed Bylaw 1911, Community Aggregate Payment Levy, at a committee of the whole (COW) meeting; aggregate levies are also known as CAP levies and are provincially regulated. At the Feb. 17 COW meeting, councillors heard a presentation about the pros and cons of the aggregate bylaw, with councillors agreeing the bylaw should be repealed and that such an action should be considered at an upcoming regular council meeting. Resolutions generally can’t be passed at COW meetings.

Van der Kuil noted there are currently five gravel pits operating in the municipality that are affected by the aggregate bylaw: three gravel operations and two sand operations.

It was also noted in the agenda information that a bylaw must be repealed by another bylaw. Readers should also note all three readings of a new bylaw must pass by vote for it to come into effect, and that all three readings of a new bylaw can be voted on at the council meeting at which it is introduced if third reading is preceded by an extra motion. This extra motion must be a unanimous council vote to allow a vote on third reading. If the motion to allow consideration of third reading is not unanimous, the vote on third reading is delayed to a future council meeting.

Reeve Lonnie McCook felt eliminating the community aggregate levy was the right thing to do. “I do believe we should repeal this bylaw,” said McCook. “It’s just another tax on all the taxpayers in Kneehill County, not just the gravel guys.”

McCook added he felt the CAP levy was difficult to control and involved too much paperwork.

Coun. Richard Hoppens echoed the reeve’s comments. “I agree,” said Hoppens, adding that the amount of revenue collected by the CAP levy didn’t justify the amount of Kneehill County’s time and money spent collecting it.

According to the Government of Alberta, CAP levies are applied to protect roads from heavy use or even damage by the gravel and sand industry. “The Community Aggregate Payment Levy regulation enables municipalities to impose a community aggregate payment levy on a shipment of sand and gravel, based on a uniform levy rate of up to a maximum of $0.25 per tonne, at the pit from which the material was extracted,” states the provincial government website.

“The levy charged helps municipalities offset the cost of repairs to infrastructure (mainly roads) that have been damaged by the heavy haulers coming from the sand and gravel extraction site.”

All three motions necessary to bring the repealing bylaw into effect were passed unanimously.