Alberta Budget 2019: Tax Plan, part 2
• Education and tuition tax credits: Alberta will eliminate its education and tuition tax credits starting in 2020 to reduce tax expenditures and better align overall post-secondary funding. Note that Alberta students will still be able to claim amounts earned prior to 2020. The estimated reduction in tax expenditures from elimination of this tax credit will be $20 million by 2019-2020, $90 million by 2020-21 and $115 million in 2021-22.
• Tobacco tax: The tobacco tax was increased last October 25 by $5 per carton of 200 cigarettes, by 3.75% per gram of loose tobacco and to 142% of the taxable price of the cigar with a minimum tax per cigar of 27.5 cents and a maximum of $8.61. These changes are estimated to generate $45-55 million per year in additional revenue.
• Education property tax: Education property tax rates will be frozen in 2019-2020. The residential / farmland rate will remain at $2.56 per $1,000 of equalized assessment and non-residential rate will remain $3.76. Revenue from the tax is estimated to rise 1.7% due to a growing assessment base. Education property tax revenue will fund about 30% of education operating costs.
• Alberta’s tax advantage: Alberta will continue to have a significant tax advantage compared to other provinces – most competitive corporate income taxes, low personal income taxes and no sales tax, payroll tax and healthcare premium.