Various Dates (June 4th, 2019)
An Act To Repeal The Carbon Tax ($)
Came Into Force (Passed)
Bill 1 - An Act To Repeal The Carbon Tax, is a piece of legislation designed for the purposes of legislating the repeal of the Climate Leadership Act and the carbon levy/tax that it created, as well as the transition that would happen after that repeal.
This section includes a couple definitions, just to make reading this a little easier. If you see an asterisk (*), it means that the term is defined up here. Some of these definitions are not the official ones used in the legislation, they’re just used to make the reading less repetitive. If the definition cites a section of the legislation, it’s an official definition from the legislation.
“CLA” - the Climate Leadership Act. This is the piece of legislation that introduced and defined the carbon levy, and related laws.
“Carbon Tax” - refers to the carbon levy as well as the regulations surrounding it as introduced in the CLA.
“Owner” - in respect of fuel, means the legal owner of the fuel. (S.2(1)(b))
“Possession” - in respect of fuel, means either the state of having the fuel in one’s own personal possession, or the state of knowingly having the fuel in the actual possession of another person, other than the person from whom the fuel was purchased. (S.2(1)(c))
Section 1 of this Act, fairly simply, repeals the entirety of the CLA*. The Act declares that this will happen on May 30th, 2019.
Section 2 is described by the Act as “Transitional Provisions”, for the purposes of transitioning out of the carbon tax*. 2(1) is responsible for several definitions, as mentioned above. 2(2) clarifies that, if the CLA* is repealed after someone buys fuel but before they take possession* of it, no carbon levy was payable on the fuel at the time that they bought it.
2(3) describes the action someone can take if, immediately at the beginning of the day on May 30th, they are either a) the owner* of fuel that they had to pay the carbon levy on at the time that they bought it or it was imported to Alberta, or b) in possession* of fuel for sale or resale in Alberta. In either of these situations, the person can file a report with the Minister responsible for the “Fuel Tax Act” on or before June 29th, 2019. The report will need to contain information related to the fuel including the quantity and type of fuel, although the Minister can ask for other details. 2(4) follows up on this by saying that the Minister will refund the carbon levy included in the report that was paid by that person if the Minister is satisfied that they’re entitled to it.
2(5) focuses on satisfying the conditions of section 35 the “Interpretation Act”, which is the laws that govern how you go about repealing existing legislation. This includes clarifying that “Minister” in the CLA* refers to the Minister responsible for the “Fuel Tax Act”, and that 3(2) of the CLA* (which is the section that dictated how revenue from the carbon tax* could be spent) does not apply. It also says that a person can’t recover any carbon tax* that they paid under 26(1) of the CLA*, which previously allowed resellers to recover the carbon tax since they were not consumers. However, if someone paid the carbon tax* before the CLA* was repealed, but after it was repealed they did something that would have entitled them to a refund, rebate, credit, or other amount of compensation under the CLA*, that can still be paid out as if the CLA* had never been repealed - provided it’s in line with regulations set out in sections 2(5) or 2(6).
2(5) also dictates that, for all purposes, 2(5) and 2(6) should be treated as if they’re part of the CLA* and the CLA* will be treated as if these sections are part of it, and any regulations made under 2(6) will be treated as if they were made under the CLA*. As well, a specific section of the “Fuel Tax Act” (63(1.2), which allowed for information gathered under the Fuel Tax Act to be disclosed to the Minister responsible for the CLA* as necessary) will be treated as if the CLA* had never been repealed.
2(6) allows the Lieutenant Governor to make regulations a) to modify the CLA* or any regulations the CLA* imposed for the purposes of its operation, following the rules set by section 35 of the “Interpretation Act”; b) providing that no part of section 35 of that Act applies to the specific matter, or providing that part or all of section 35 only applies for a specified period of time; c) changing information related to the time periods set out in the Climate Leadership Regulation, based on changes made in 5(f); or d) providing for any matter that the Minister thinks isn’t provided for or isn’t sufficiently provided for by either Bill 1 or section 35 of the “Interpretation Act” with respect to repealing the CLA*. 2(7) allows regulations made under the previous subsection to be applied retroactively, as well.
At this point, Bill 1 moves onto “Consequential Amendments” - these are amendments that need to be made to other laws to bring them into line with this new legislation.
Section 3 focuses on amending the “Alberta Personal Income Tax Act”. 3(2) changes the language on carbon tax* payments to reflect that the CLA* is no longer in effect.
Section 4 amends the “City Charters Fiscal Framework Act” by removing a reference to the CLA* in section 6(3) of that Act as well as by striking section 1(1)(e)(i) of the Schedule, which was responsible for clarifying that the province could not claim revenue from the CLA* or revenue paid into the Climate Change and Emissions Management Fund as part of the “provincial revenue”.
Section 5 amends the “Fuel Tax Act”. 5(2) gets rid of 21.1 and 21.2, as well as the heading that preceded those two sections, which covered the payment of the carbon tax* by interjurisdictional carriers. It also repeals 63(1.2), which was mentioned back in 2(5) and covered disclosure of information to the Minister responsible for the CLA*. It also amends section 63(6) by striking out references to the carbon tax* or the CLA*.
Section 6 covers the coming into force of Bill 1, as well as the repeal of section 2 (the transitional provisions). Section 1 of this legislation, as described in that section, will come into force on May 30th - this is not a part of Section 6, but is still relevant to the topic. Sections 2, 3, 4, and 5 of Bill 1 will come into force on May 30th as well. Section 2, however, will be repealed on proclamation.