Rocky View County (RVC) is adding its voice to the growing list of municipalities objecting to proposed Alberta Government changes to the assessment model for oil wells, pipelines, and machinery and equipment.

The provincial government is considering changing how oil and gas property is assessed, from the current model of asset replacement value to a new model of market value. Under the four possible scenarios being considered, Rocky View County would lose hundreds-of-millions of dollars in assessed value in oil and gas properties. That doesn't make RVC Reeve Greg Boehlke very happy.

“That could mean a 6.9 to 8 percent property tax increase for every resident and business in the county in 2021,” Boehlke says.  “That’s particularly significant because rural municipalities don’t have a lot of fluff in their budgets. Our money goes to roads, policing, and fire services. We’ll be forced to either cut important core services or pass on substantial tax increases in these challenging times.”

Boehlke says the county appreciates the work the province has done to support the energy sector, but changes to the assessment model represent a step too far.

“We’ve seen the province download costs to municipalities, take a bigger share of municipal revenue, and now we’re being asked to forgo revenue from our largest industry. We’re fully supportive of Alberta’s work to open markets, build pipelines, cut red tape, and improve the oil and gas industry’s positive profile. But we are deeply concerned about changes that shift costs onto average taxpayers and business owners.”

The Rocky View County council is contacting area MLAs and government ministers to express their concerns in advance of the final decision, expected in mid-August.  RVC is encouraging residents and business owners to share their views on this issue by contacting their local MLA.

The MD of Starland around Drumheller has also expressed concerns over the new assessment model.  Starland says under current tax rates, the system being proposed by the government would result in a loss of between $2.6 million and $3.75 million dollars for that county.  Farmland and residential taxes would need to increase by nearly 200 percent to make up for the loss of revenue. 

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