Alberta Treasury - News Release 24-Feb-2000 - Budget 2000 Backgrounder: Fees and Charges



Backgrounder






Albertans to benefit from $60 million cut to user fees

The savings start immediately for Albertans as a result
of the province’s fees and charges review.

Effective midnight tonight, a number of Alberta’s fees and charges will drop, meaning Albertans will collectively pay $60 million less for these services.


Since the spring of 1999, the Fees and Charges Review Committee has been closely examining Alberta’s fees and charges. The Alberta government will act on a number of the committee’s recommendations to lower fees on services provided by Alberta Government Services and its registry agent network and Alberta Justice, including reductions of:

  • $3.3 million in Surrogate Court fees for letters of probate and administration
  • $34.5 million in Land Titles Registry fees
  • $1.9 million in Land-Related Information System fees
  • $10.8 million Corporate Registry fees; and
  • $8 million in Personal Property Registry fees

A comprehensive review

In October 1998, the Supreme Court of Canada determined that, for a compulsory government fee to be constitutionally valid, the amount charged must reflect the cost of the service provided. While other provinces decided to protect their fees in legislation instead of reducing them. Alberta viewed the Supreme Court’s decision as an opportunity to conduct a one-year, full-scale review of all user fees, charges and premiums and pledged to reduce fees following the review.

The Fees and Charges Review Committee, chaired by St. Albert MLA Mary O’Neill, was established with a one-year mandate to review all government fees and charges to determine whether the amounts charged are appropriate. The committee was also authorized to review the government’s general policy on fees and charges, and to comment on fees and charges levied by other government entities.

A comprehensive final report will be provided to the Provincial Treasurer by the spring of 2000. The report will detail the committee’s review and outline recommendations on the government's general fees and charges policy. It will also serve as the foundation for any subsequent changes to policy on fees and charges and the recommendations will guide the government’s review of any changes in future years.

Reductions will mean considerable savings for Albertans

Individual savings as a result of the reductions recommended by the committee will be substantial. For instance, under the old fee schedule, a homebuyer was required to pay $365 in Land Titles fees when purchasing a $150,000 house with a $140,000 mortgage. Under the new fee schedule, this charge has been reduced by 64 per cent to $133 (see table below).

Service

Old Fee
($)

New Fee
($)

Transfer of Title ($150,000) 185 65
Registration of Caveat 15 15
Registration of Mortgage ($140,000) 155 43
Discharge of Caveat 5 5
Discharge of Mortgage 5 5
Total 365 133

Alberta businesses, small and large, will benefit from reductions in Corporate Registry fees. For instance, a Certificate of Incorporation will now cost 66 per cent less with a reduction from $300 to $100. Certificates of a Limited Partnership have been reduced from $150 to $50.

Registry agents will continue to charge nominal fees to cover their own cost of delivering these services.

For more details on the new registries fee schedule, visit the Alberta Government Services website at www.gov.ab.ca/gs.

Go to: Next Budget 2000 News Release or Backgrounder

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For further information, please contact:

Bob Scott
Director of Communications
Alberta Justice
(780) 427-8530

Bart Johnson
Director of Communications
Government Services
(780) 427-0788

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Copyright © 2001 Government of Alberta.