By Curtis Galbraith

Municipal Politics

Still unknowns in oil and gas taxation changes for municipal leaders

Oct 21, 2020 | 5:30 AM

One local municipal leader says changes for oil and gas well taxation means a loss of revenue, but also understands the work was done to find a balance to help the energy industry.

The province announced Monday it was exempting property taxes on new wells and pipelines for three years, lowering assessments for less productive oil and gas fields, and eliminating the Well Drilling Equipment Tax.

County of Grande Prairie Reeve Leanne Beaupre says the money collected from the new well tax was put back into roads where such drilling takes place.

“That will have a financial impact, for sure. It’s not money that we budget for from year to year, but we know that we feel we can partner with industry and the province to help (incentivize) and support industry.”

Beaupre says the County recently collected $1.4 million from this tax.

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There is still a lot municipalities are wondering about regarding these changes.

“It goes back to the devil is in the details. So, they’re deferring property tax on any new drill or pipeline for three years, but it doesn’t talk about the requirement for the education requisition, which, with that shovel well tax that was implemented two years ago, municipalities still have to pick up the education requisition, ” says Beaupre.

“I would assume that Municipal Affairs will still do the assessment on the new property for the next three years so that municipalities have an idea what is out there and what is being deferred for the next three years. It is not quite clear who is going to pick up that education requisition.”

Beaupre adds the issue of unpaid taxes still needs to be addressed.