What farmers need to know about the new federal carbon tax

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Source: Alberta Wheat and Barley Commissions

While Premier Jason Kenney and his government repealed the provincial carbon levy in June through Bill 1, the federal government is imposing a new carbon tax in Alberta effective January 1, 2020.

While the federal government has announced targeted relief for marked gasoline and diesel fuel used by farmers, farmers must complete and submit a one-time Exemption Certificate to their fuel service provider before the time of delivery. Many fuel service providers in Alberta are urging farmers to submit their Exemption Certificates by December 31, 2019.

The Alberta Wheat and Barley Commissions have been urging the Government of Canada to exempt all fuels used for farm-use from the federal carbon tax including propane and natural gas used for grain drying, but those requests have been rejected.

While the Alberta government is challenging the new federal carbon tax constitutionally, until a decision is made, the tax will apply.

What Farmers Need to Know:

  • To be eligible for the exemption on marked gasoline and diesel farmers must complete and submit the following Exemption Certificate form to their fuel service provider before the time of delivery, Fuel Charge Exemption Certificate for Farmers.
  • This Fuel Charge Exemption Certificate for Farmers is a one-time submission to farmers’ fuel service provider. An Exemption Certificate must be provided to all of their service providers individually. They are not transferable between suppliers.
  • Suppliers will be notifying farmers in the near term with specific details. Many suppliers are urging farmers to submit their Exemption Certificates by December 31, 2019 to ensure that forms are received before the earliest possible fuel delivery.
  • Delivery drivers representing fuel service providers MAY NOT take completed certificates from farmers to the provider. However, all fuel providers’ retail stores will take farmers’ completed certificates and may be required at least one day prior to delivery.
  • The commissions strongly urge farmers to contact their fuel service providers or visit their website, to find out how they can submit their exemption certificates prior to December 31, 2019 (ex. email, in-person, mail, fax, etc.) to ensure they receive the carbon tax exemption.
  • Premier Jason Kenney repealed the provincial carbon levy in June of 2019 with Bill 1, as part of a campaign promise after defeating the NDP. This fuel charge coming January 1, 2020 is a federal carbon tax. While it is being constitutionally challenged by Alberta, until a decision has been made, the federal carbon tax will apply.
  • The Alberta Wheat and Barley Commissions have urged the Government of Canada to exempt all fuels used for farm-use to be exempted from the federal carbon tax including propane and natural gas used for grain drying, but those requests have been rejected.
  • For an example of the cost to farmers: The federal fuel tax on diesel come January 1, 2020 will be $0.0537/litre. Based on a 15,000 litre tank, the carbon tax for diesel would cost a farmer over $800 on a single filling.

 

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