Counties warn of “disastrous consequences” if province approves oil & gas tax breaks
Tax changes being eyed by the provincial government for the oil & gas industry could be the death knell, or close to it, for many of Alberta’s rural municipalities.
Rural Municipalities of Alberta (RMA) says the United Conservative government is proposing four sets of changes to the assessment of wells, pipelines, and machinery and equipment properties.
The province based its review assuming the assessment system could be manipulated, RMA writes in an advocacy piece on its website, to reduce costs for the oil & gas industry through reduced assessment and taxation.
RMA says despite providing significant analysis showing significant fiscal and viability impacts on municipalities, as well as the limited competitive benefits to industry, options presented by government reflect a lack of focus on the important role of property taxes in municipal operations.