Southern Alberta feedlot owners are headed back to court to fight a head tax implemented by Lethbridge County in 2016 on livestock in their jurisdiction.

On Wednesday a group of eight companies filed an appeal on the decision made by Justice Rodney Jerke in April that the $3-per-head tax — officially known as the county's business tax — was permitted under the Alberta Municipal Government Act.

"In my estimation, it is the beginning of the end of intensive livestock in the county of Lethbridge," said Rick Paskal, president of Van Raay Paskal Farms Ltd., one of the companies involved.

"If they win this appeal, it is the death [of] value-added industries and, in our case, the cattle-feeding industry in southern Alberta."

The April decision did rule that a second tax added by the county in 2016 wasn't permitted, called the special tax. The county estimates that the loss of that expected revenue is roughly $700,000.

Both taxes were brought in by the county to supplement their dwindling tax revenues needed to maintain and repair infrastructure in the area, including nearly 2,000 kilometres of roads and 167 bridges. Prior to the taxes being implemented, the county was bringing in nearly $3 million annually. The head tax is estimated to bring in about $2.5 million a year.

Lethbridge County Reeve Lorne Hickey says that council is made up of farmers, and their goal isn't to break anyone's bank. (Sarah Lawrynuik/CBC)

Lorne Hickey, Lethbridge County Reeve, says that council is made up of farmers and they have the best of intentions.

"We don't want to put anybody in the position that would bankrupt them or break their industry. That's not the idea behind it. But at the same time, we have to supply the infrastructure necessary for that group of individuals to get their product to market," he told CBC News.

The business tax was $3-per-head at its introduction but has since been lowered to $2.50-per-head for 2017.

Lethbridge County implemented the tax, called the business tax in 2016. (Sarah Lawrynuik/CBC)

Paskal is suspicious the rate was lowered to pander to voters in an election year for council, but his ultimate fear is that a less agriculture-friendly council could be elected at some point. If this tax is allowed to stand, he worries that council could raise the rate and consequently force business out of southern Alberta.

"It is a dangerous, dangerous thing that has happened here," he said.

"Are other municipalities watching this thing? Without a doubt."

Both beef and dairy cows are subject to the business tax, as well as sheep, horses, pigs and chickens. There are thresholds, beneath which, no tax is paid on the livestock.