OIL AND GAS ASSESSMENT MODEL REVIEW
On July 23, 2020, Beaver County received information regarding the Government of Alberta's review of the assessment model for oil and gas properties. The Provincial Government has been studying the method of assessing oil and gas wells for over a year due to pressure from the industry to reduce property taxes and enhance their competitiveness in a challenging economy.
The Government has released four scenarios to adjust the way in which oil and gas properties are assessed, all of which result in a dramatic reduction in the County's non-residential assessment base.
The Rural Municipalities of Alberta (RMA), on behalf of all rural municipalities, reviewed the information provided by the Government and analyzed the impacts thoroughly.
In response, RMA issued an Outcomes Summary, a Position Statement, and their projection of long-term impacts on municipal taxation (Summary of Changes to Depreciation). They have also provided a prediction of the impact that each scenario will have on Beaver County. Click here to read the letter from RMA to Beaver County and the Impacts Report.
RMA has also proposed viable alternatives for the Government's consideration that would support the oil and gas industry in its efforts to enhance industry competitiveness without unfairly targeting municipalities. Click here for a copy of this report.
Beaver County is gravely concerned with the changes proposed to the assessment of oil and gas properties. The County could lose up to 15% of its property tax revenue which could translate into one or more of the following impacts:
1. The residential tax rate could increase in the range of 83% to 103%.
2. The non-residential tax rate could increase in the range of 42% to 58%.
3. The number of full-time staff could be reduced by 64%.
4. The level at which services are delivered to ratepayers could be reduced or certain programs could be eliminated.
5. Grant funding from the County to the towns/villages/non-profit organizations could be reduced.
The Provincial Government is accepting input on the proposed assessment models from municipalities and other interested stakeholders within the next 30 days.
Beaver County Council is reaching out to the local MLAs, requesting that they reconsider the proposed assessment changes. You are encouraged to lend your voice to this matter. To help, you can:
... Review the information provided in the links above
... Contact your local Councillor for more information
... Contact your MLA - Jackie Lovely at 780-672-0000 or email@example.com or Rick Wilson at 780-360-8003 or firstname.lastname@example.org.