By Chris Brown

counties could see big losses

NDP wants province to stop oil and gas assessment changes

Oct 6, 2020 | 4:35 PM

The Alberta NDP is calling on the provincial government to stop proposed oil and gas assessment changes that would reduce municipal taxes for those companies and leader Rachel Notley says could have potentially devastating impacts to rural municipalities.

“Scrap this plan and start consulting with the Albertans who will be the most impacted by these changes so that we can find a solution that reduces costs for everyday families and that will build an economy that will work for everyone,” said Notley this afternoon.

She is calling for a plan that focuses on job creation and ensures all Albertans are part of the recovery and that supports Alberta-based companies, attracts investment in the province and creates jobs at home.

“But quite frankly, simply handing money over to large out-of-province companies with the hope and crossed fingers that that money will somehow trickle down to Albertans in the form of some jobs maybe being protected but we don’t know for sure is outdated thinking,” Notley said.

“We can’t keep recycling the same failed economic recipe and expecting different results.”

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She said municipalities will have no choice but to pass these losses from the oil and gas assessment changes along to their residents, resulting in some form of massive cuts to services or property tax increases. Notley said rural municipalities would be required to raise taxes on average 200 per cent and some much higher and the County of Newell has said it could see a 466 per cent increase.

In a release, the NDP says the revenue loss for Newell County would be $11 million total and a download cost of more than $5,800 per household. In Cypress County, it could be as much as $11 million, or more than $5,700 per household. The MD of Taber is forecast to lose about $4.1 million, or nearly $2,300 per household.

In Red Deer County, Mayor Jim Wood has suggested that property tax increases of as much as 30 per cent could possible in his county that has held the line on tax rates for the last several years.

Lacombe County Reeve Paula Law said residents there could see a property tax hike of as much as 39 per cent if the proposed changes go through.

RELATED: Counties warn of “disastrous consequences” if province approves oil & gas tax breaks

Notley said the options being proposed range anywhere from a seven to 20 per cent decrease in the assessment value of oil and gas property. Rural municipalities would lose $290 million in 2021 alone, with the losses expected to increase going forward.

The Rural Municipalities of Alberta says large oil and gas companies are the beneficiaries of the changes.

“I know and understand that our energy sector is struggling right now. But shifting these costs thoughtlessly onto rural Albertans is not the solution,” said Notley.

She said the province is in the midst of a generational economic shift and the complex issues “need to be solved if we are going to be set up for recovery today while creating a stronger economy for tomorrow.”

(CHAT News Today – With file from rdnewsNOW stories by Josh Hall)