The Government of Alberta recently announced a deal to ease municipal taxes for oil and gas companies, offering the industry a three-year exemption on property taxes when drilling new wells or constructing new pipelines, starting with the 2021 assessment for the 2022 tax year.
The proposed measures also include lowering assessments on less productive wells and extending the previously introduced Shallow Gas Tax Relief Initiative (SGTRI) for an additional three years. Sustaining the SGTRI will continue to provide companies with a 35% reduction on qualifying shallow gas wells province-wide.
Additionally, to attract further investment, the government announced that it intends to eliminate the Well Drilling Equipment Tax for new drills and other applicable equipment.
While this is not a long-term fix, the province will continue discussions with municipalities and stakeholders to resolve its current assessment model issues going forward.
Being an engaged stakeholder and industry representative, the Ryan energy team is committed to advocating on behalf of our energy clients. We will continue to provide updates on this topic as any new developments unfold.
For further information on the proposed municipal tax changes, access the press release.
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.