The Province pushed the pause button on major changes to their municipal tax assessment review process this week, but they are introducing new tax exemptions for oil and gas wells and pipelines from 2022 to 2024.

Livingstone-Macleod MLA Roger Reid, says that's welcome news to some regions who were concerned they were going to have to raise local tax rates significantly to cover any difference.

He says the changes won't make much difference around here.

"I know from municipalities in my riding, there's actually little or minimal impact to their revenues from the assessment model at this point."

Foothills County Division Two Councillor, Delilah Miller, has said she thinks the companies benefiting from the tax breaks should have to show proof of job creation and investment.

Reid, agrees, at least in principal.

"We have a desperate need to be able to ensure we're putting Albertans back to work these days. You know and the encouragement when I talk to groups about projects in the riding and certainly how they're going to utilize local labour and local companies to meet those mandates and I would encourage those oil and energy producers to do exactly the same."

Reid, says they'll hold off on a rural municipalities assessment review until at least 2024.

"We heard both from municipalities and industry that because of the days we're in with the pandemic and the economy the way it is, this is not the time to make major changes."

Assessments on new shallow gas wells will be reduced 35 per cent over the next three years, as will assessments on less productive wells.

Some rural municipalities were worried they'd lose seven to 20 per cent of their tax base, if the province had gone ahead with their initial plans, but instead that number will be closer to three per cent.

Read More: NDP Calls For End To Oil And Gas Property Tax Breaks

Energy Companies Drilling New Wells Get A Break

 

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