Reinstate Full Funding to the Grants in Place of Taxes (GIPOT) Program

Issue: 

The Government of Alberta committed in Alberta Budget 2025 to reinstate full funding to the Grants in Place of Taxes (GIPOT) program, and they must keep that commitment as part of the effort to ensure fair and sustainable municipal funding which directly impacts the health of local economies and businesses. 

Background: 

The Grants in Place of Taxes (GIPOT) program is designed to compensate municipalities for the loss of property tax revenue on properties owned by the provincial government, which are exempt from municipal taxation. The payment is (intended) to acknowledge that the province benefits from municipal services provided to these properties, such as roadwork, snow clearing, transit, and emergency services.

In 2019-2020 the province reduced GIPOT payments to 75% of the eligible amount, and the following year they were further reduced to 50% where they have remained with no significant increase compared to the drastic reduction in funding. The result was significant revenue shortfalls for municipalities.

Our Recommendations

The Alberta Chambers of Commerce Recommends that the Government of Alberta:

1. Commit to the 2025 budget commitments for the restoration of Grants in Place of Taxes (GIPOT) program and ensure full eligible amount pre 2019/2020 budget cuts by the 2027 deadline.