Alberta Regulation 71/2024 amends the existing Fuel Tax Act under the Alberta Fuel Tax Regulation (AR 62/2007). The regulation introduces changes designed to modernize and clarify provisions, particularly in relation to tax exemptions, definitions, and administration. Key changes include updates to definitions, the introduction of new tax exemptions, and modifications to the procedures for tax collection.

One of the notable amendments is to Section 1(1), which now includes a definition of “band” according to the Indian Act of Canada, ensuring clarity regarding which groups qualify for specific fuel tax exemptions. Additionally, several clauses in Section 1(1) have been either repealed or updated. For example, Clause (bb)(ii) removes references to sections 12 and 28 of the Act, leaving only Section 12. The definition of “renewable alcohol” in Clause (gg.1) has also been updated to align with the Renewable Fuels Standard Regulation (AR 29/2010), specifying that denaturants and additives should make up no more than 1% of the fuel volume.

A significant new section, Section 2.1, specifies that no tax is payable on liquefied petroleum gas (LPG) if it is purchased in sealed containers holding no more than four liters or cylinders holding up to 28 liters. This change simplifies tax requirements for consumers purchasing small quantities of LPG for personal or household use.

The regulation also addresses tax remittance timelines in Section 6(8), requiring those liable to pay fuel taxes to remit their payments to the Minister within seven days of the tax becoming payable. This ensures that taxes are collected in a timely and efficient manner. Additionally, Section 7.1 introduces provisions for fuel tax exemptions for Indigenous peoples, known as “Indians” under the Indian Act, and certain First Nations reserves. Indians are now eligible to purchase tax-exempt fuel for personal use on reserves, as well as in specific areas like the Garden River settlement and Heart Lake First Nation.

Section 8 further clarifies exemptions for farmers in Alberta. Farmers can apply for fuel tax exemption certificates to purchase marked fuel from exempt-sale vendors for their farming operations. This adjustment supports the agricultural sector by providing easier access to tax-exempt fuel for farm use.

Several other sections of the regulation pertain to the issuance and validation of ministerial identification cards, which are required for certain groups, such as bands, to claim tax exemptions. Section 9(5) states that a band must have part of its reserve or an office in Alberta to qualify for a ministerial identification card. Additional changes in Sections 12 and 23 regulate the issuance, suspension, or cancellation of these cards if the cardholder fails to meet specific requirements, such as the payment of taxes.

Alberta Regulation 71/2024 introduces a series of important amendments to the Fuel Tax Act, with a focus on refining definitions, improving exemptions for Indigenous peoples and farmers, and simplifying administrative processes related to tax collection and compliance.

Alberta (71/2024) May 15, 2024