Non Partisan Association

The Non-Partisan Association proposes a novel, legally defensible mechanism to generate new provincial revenue without imposing a general tax. This proposal leverages existing provincial jurisdiction over infrastructure and waste management to create a regulatory user fee on e-commerce parcels: the Alberta Road & Bridge Recovery Fee (ARBRF).

The Mechanism

The ARBRF is a mandatory $0.75 per-parcel surcharge collected at the point of sale by e-commerce facilitators (e.g., Amazon, Walmart) for all shipments destined for an Alberta address.

Component	Details
Fee Amount	$0.75 per parcel—a modest, widely acceptable amount
Estimated Annual Revenue	Approximately $141.6 million (based on 188.8 million parcels/year)
Collection Method	Collected at point of sale by e-commerce facilitators
Applicability	All shipments destined for Alberta addresses

Constitutional and Legal Framework

The legality of the ARBRF rests on two key principles of Canadian constitutional law:

Provincial Jurisdiction

The province has the exclusive right to legislate regarding "Local Works and Undertakings" and "Property and Civil Rights in the Province" under the Constitution Act, 1867.

The "Regulatory Charge" Test

A fee is legal if it meets these criteria:

• It is connected to a specific regulatory scheme (Road Maintenance)
• The revenue is used exclusively for that scheme, not general funds
• The fee is roughly proportional to the cost of the service provided

The ARBRF meets these criteria by funding a dedicated, ring-fenced infrastructure program. It is not a general sales tax, which avoids conflict with federal tax law by adhering strictly to the legal definition of a "regulatory charge" tied to specific services.

Revenue Allocation

Public acceptance could be improved by connecting the fee directly to visible infrastructure improvements. The NPA proposes the following dedicated allocation:

Allocation	Purpose
70% to Municipalities	Local Road Grants addressing residential road wear and tear from delivery vehicles
30% to Provincial Fund	Rural Bridge & Culvert Repair addressing rural infrastructure needs

Implementation Considerations

• Legislative Framework: Legislation requiring e-commerce entities to collect and remit the per-parcel fee
• Transparency: Clear labeling of the fee on customer receipts to show exactly where the money goes
• Dedicated Use: Ensuring revenue is used specifically for infrastructure programs, with public reporting on projects funded
• Compliance Mechanisms: Reasonable enforcement provisions for e-commerce facilitators

Rationale

The explosive growth of e-commerce has fundamentally changed how goods move through Alberta communities. Delivery vehicles now make multiple daily trips through residential neighborhoods, accelerating wear on local roads that were not designed for commercial traffic volumes.

This fee creates a direct connection between the activity causing infrastructure wear (parcel delivery) and funding for repair—a principle that aligns with the "user pays" approach common in infrastructure finance.

Conclusion

Implementing a per-parcel fee on e-commerce shipments could generate significant annual revenue to address the impacts of increased delivery traffic on infrastructure. This approach warrants further consideration as a sustainable, legally sound mechanism for infrastructure investment.