Report Suggests Lethbridge County Feedlot Tax Could Cause Negative Long Term Effects

The University of Calgary School of Public Policy notes that a user fee on the trucking industry would be more equitable.

A 23-page report from the School of Public Policy at the University of Calgary taking a detailed look at the Lethbridge County feedlot tax. The tax was imposed last year based on livestock storage capacity, in order to provide $2.5-million for road maintenance within the county. Mel McMillan, one author of the report, says while it may not have an affect in the short term, the long term effects of the feedlot tax on profit could be detrimental for operators and could result in them possibly closing down or having to move out of Lethbridge County. McMillan notes that the cost should be distributed through those that benefit from it, suggesting a user fee on the trucking industry would be the most equitable. He explains that feedlots that rely on trucking to transport feed and animals would pay more than those who, for example, grow their feed. In addition, the report says the county could also consider a usage levy based on how much it spends on roads, combined with a feedlot's capacity plus its distance from a provincial highway, or a tax based on how many livestock per feedlot exceed the actual capacity of that farm's own crops to feed them. -Sam Borsato
 
Mel McMillan:
 

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