Alberta’s rural municipalities are sounding the alarm over the province’s oil and gas tax policies, saying they are putting their viability at risk.
According to a recent survey conducted by the Rural Municipalities of Alberta (RMA), 94% of respondents reported that the current tax regime for oil and gas properties is negatively impacting their communities. This sentiment was echoed by the Alberta Association of Municipal Districts and Counties (AAMDC), which represents 69 rural municipalities in the province.
The main issue at hand is the assessment of oil and gas properties, which is used to determine the amount of taxes that companies pay to municipalities. Currently, these properties are assessed at a lower rate than other industries, resulting in a significant loss of revenue for rural municipalities.
RMA President Al Kemmere stated that this loss of revenue is putting a strain on essential services such as road maintenance, fire protection, and waste management. He also noted that rural municipalities are already facing financial challenges due to the economic downturn and the COVID-19 pandemic.
The AAMDC has proposed a solution to this issue, calling for a fair and equitable assessment of oil and gas properties. They argue that this would not only benefit rural municipalities, but also the province as a whole by ensuring a stable and sustainable source of revenue.
In response, the Alberta government has stated that they are committed to working with municipalities to find a solution. However, they also emphasized the importance of maintaining a competitive tax regime for the oil and gas industry, which is a major contributor to the province’s economy.
Despite this, rural municipalities are growing increasingly concerned about their future viability. The RMA survey found that 80% of respondents are considering cutting services or increasing taxes to make up for the loss of revenue from oil and gas properties.
In light of these concerns, the RMA and AAMDC are calling on the Alberta government to take immediate action to address this issue. They argue that a fair and equitable tax regime is crucial for the sustainability of rural communities and the province as a whole.
In the words of AAMDC President Al Kemmere, “It’s time for the government to step up and work with us to find a solution that benefits all Albertans.”
