Universal Soil Removal Fee



Endorsed by the NCLGA Membership


WHEREAS municipalities are permitted to implement soil removal fees to compensate for the fact that current assessment methodology limits the ability for municipalities to appropriately tax gravel operations;

AND WHEREAS gravel operators within municipal boundaries take the position that the imposition of a soil removal fee on their operations affects their ability to compete with gravel operators outside of municipal boundaries;

THEREFORE BE IT RESOLVED that the NCLGA and UBCM lobby the Provincial Government to establish a universal soil removal fee that can be applied across the province, with the funds generated within a municipality accruing to the municipality and the funds generated in the regional district accruing to the regional district.

Additional Information

UBCM Comments:

UBCM Members have considered a number of resolutions over the years related to soil removal fees and bylaws. In 2008 Members endorsed B135 which called for an increase in fees for soil removal.

The Committee notes that presently municipalities may impose soil removal fees as a volume-based levy on production, but the courts have ruled that these fees must be related to direct costs of the aggregate operation to the municipality. The only cost recognized to date is the maintenance of roads damaged by gravel truck traffic.

In 2001 a report from a provincial Aggregate Advisory Panel recommended that a new fee be established to replace the fees collected through soil removal bylaws that would fund the aggregate resource management planning process by the Province and regional district to allow them to identify areas where aggregate extraction may be approved in the future. The Report’s recommendations have not been acted upon.