Financial Statutes Amendment Act, 2024 ($)

Summary#

• This is an omnibus finance bill that changes several tax and finance laws in Alberta. It raises tobacco taxes, creates a $5,000 “Attraction Bonus” for certain workers who move to Alberta, updates two business tax credit programs, adds new levies on property and mortgage registrations, and creates the Alberta Fund for one-time spending.

• Many parts take effect on a future date set by the government (Proclamation). The tobacco tax changes took effect March 1, 2024.

• Key changes:

  • New levies when registering land transfers/leases and mortgages; amounts scale with property value or loan size.
  • A $5,000 Attraction Bonus for eligible workers in listed jobs who move to Alberta, subject to a funding cap and application rules.
  • Film and Television Tax Credit can be paid out by year during production; no interest paid on amounts credited.
  • Agri‑Processing Investment Tax Credit expanded to include partnerships with corporate members; credits can be split among partners.
  • Creates the Alberta Fund and excludes its one‑time spending from certain deficit rules; requires clearer mid‑year budget updates.
  • Raises tobacco taxes on cigarettes and smokeless tobacco.

What it means for you#

• Homebuyers and sellers
  • Registering a property transfer will include a new levy: $50 plus about $5 for every $5,000 of the property’s value. Example: a $500,000 home would pay about $550. Registered leases also pay the levy.
• Borrowers and homeowners refinancing
  • Registering a mortgage (or increasing one) will include a new levy: $50 plus about $5 for every $5,000 of the mortgage amount (or property value if that is lower). Example: a $400,000 mortgage would pay about $450.
• Renters
  • Landlords’ higher registration costs could be passed through in rents over time, though the bill does not set rents.
• Smokers and users of smokeless tobacco
  • Provincial tobacco taxes increased on March 1, 2024. Expect higher retail prices for cigarettes and smokeless tobacco.
• Film and TV producers
  • You can opt to receive tax credit certificates by taxation year during an “eligibility period,” rather than only at the end of production. This can help cash flow. If a certificate is revoked, it is treated as if it was never issued for corporate tax purposes. The province will not pay interest on amounts applied or paid under the related tax credit process.
• Agri‑processing companies and partnerships
  • More business structures can access the 12% investment tax credit. If the applicant is a partnership with corporate members, the credit can be apportioned among the corporate partners.
• Workers moving to Alberta
  • A one‑time $5,000 Attraction Bonus will be available to people in prescribed occupations who become Alberta residents after a set date, live in Alberta for at least 12 months before applying, work in Alberta, and file a 2024 tax return and receive a Notice of Assessment. Applications are processed in order until funding runs out. The bonus can be applied to any debts you owe the province before any payment is made to you.
• Taxpayers following the budget
  • The Alberta Fund will hold money for one‑time projects. Spending from this fund will not count toward certain deficit limits, and mid‑year budget reports must include clearer economic and fiscal updates.

Expenses#

Estimated net impact: increases provincial revenue (new land and mortgage levies and higher tobacco tax) and adds new program costs (Attraction Bonus); other changes mainly affect timing and eligibility.

• Attraction Bonus
  • $5,000 per eligible person.
  • Funding cap: $10 million total unless cabinet increases it by regulation (about 2,000 recipients at the base cap).
• Land transfer levy
  • New revenue based on transaction value: $50 plus about $5 per $5,000 of property value. A portion may be directed to the Land Titles Assurance Fund. Total revenue depends on market activity.
• Mortgage levy
  • New revenue based on mortgage amount or property value: $50 plus about $5 per $5,000. Applies to new registrations and certain amendments.
• Tobacco tax
  • Rate increases (2.5 cents more per cigarette; 7.5 cents more per gram of smokeless tobacco) are expected to raise revenue; the amount depends on sales.
• Film/TV and Agri‑processing credits
  • Do not raise credit rates; changes could increase uptake or shift payouts earlier in production. Fiscal impact depends on application volumes.
• Alberta Fund
  • The bill sets rules but no specific dollar amounts. Spending from the fund is excluded from certain deficit rules.

Proponents' View#

• Helps attract and retain needed workers with a targeted $5,000 bonus, supporting services and growth.
• Modernizes land title and mortgage charges by tying levies to value, stabilizing funding for the registry and the assurance fund.
• Higher tobacco taxes can reduce smoking and support health priorities while raising revenue.
• Film/TV changes improve cash flow and certainty for productions, helping Alberta compete for shoots and related jobs.
• Agri‑processing credit changes make it easier for partnerships to invest, supporting rural jobs and food processing.
• The Alberta Fund separates one‑time projects from ongoing costs and keeps balanced‑budget rules focused on core operations.

Opponents' View#

• New levies add to the cost of buying, selling, or refinancing a home and could worsen affordability or be passed on to renters.
• The $5,000 bonus is small, capped, first‑come‑first‑served, and limited to selected occupations; rules may be complex and exclude many newcomers.
• Excluding Alberta Fund spending from deficit limits could weaken fiscal discipline and make the true deficit less transparent.
• Tobacco tax hikes are regressive (hit lower‑income people harder) and may spur cross‑border or illicit purchases.
• Allowing film/TV payouts by year and expanding agri‑processing eligibility could raise program costs if uptake grows; removing interest on delayed credits shifts costs to companies.
• Greater ministerial discretion (directives, reconsiderations with no appeal) may reduce accountability and predictability for applicants.