Changes in the tax model on oil and gas properties have at least one Lakeland municipality breathing a sigh of relief. Provincial Minister of Municipal Affairs Tracy Allard said on Monday that oil and gas properties will get a three-year “property tax vacation” on new wells and pipelines and lower assessments for less productive oil and gas wells for three years.
The MD of Bonnyville had joined with other places in the province initially showing concern about potential changes. On Wednesday officials with the MD said they saw the new plan as a “more practical and reasonable approach to the assessment model changes for oil wells, pipelines, and machinery and equipment”.
“This new approach is a good balance between incentivizing the future expansion of the
oil and gas industry and promoting jobs in the present, while also recognizing the sizable impact
on municipal finances,” says MD of Bonnyville Reeve Greg Sawchuk.
The MD says once the full details are out for the plan, They’ll have an answer on the full financial impact on the municipality.