The Government of Alberta is currently considering a decision to bring fairness and sustainability to our province's property tax framework - this is vitally important work that will protect jobs and preserve revenues for all levels of government.
The decision could happen any day now so we need to keep the action going. Will you call your MLA today? We need to ensure they support the decision to modernize our property tax framework and protect Alberta jobs.
Fixing our broken property tax system is one of the most important things our government can do to protect oil and gas jobs in Alberta - but the government needs to hear directly from Albertans that they support these changes.
Alberta’s assessment framework hasn’t been updated in nearly two decades and is in dire need of modernization. This has created a disconnect in the real and assessed value of oil and gas properties and an unsustainable property tax burden:
- Older wells and pipelines are assessed as if they are new
- A comparable gas well in Alberta is assessed over 20 times higher than it would be in B.C.
- A steam-assisted gravity drain (SAGD) facility in Saskatchewan is assessed 13 times lower than a comparable on in Alberta
So while natural gas and oil reserves have declined and the value of company assets has decreased significantly over the past decade, taxes levied on these companies have continued to increase.
This is a problem.
Oil and natural gas companies are going under, properties are being shut in or abandoned, and companies are pointing to high property tax costs as a cause.
This isn’t about a tax grab by municipalities or a tax break for oil and gas. It’s about creating a sustainable property tax framework that is fair and transparent, so our industry can be competitive and generate revenues for all levels of government well into the future. Most importantly, it’s how we can protect and create jobs.
Let the government know you support protecting jobs today by calling your local MLA using the tool to the right.
It will only take a minute and your call could be the one that pushes these vital changes over the finish line.
- While the value of natural gas and oil reserves and company assets has decreased significantly over the past decade, taxes levied on these companies have continued to increase.
- Between 2008 and 2018, revenues collected from municipal property taxes nearly doubled from $3.8 billion to $7.4 billion.
- During this same period, oil and gas enterprise value has fallen from a high of $380 billion in 2008 to $117 billion in 2020. And the value of oil and gas assets fell 70 per cent.
- The Blue Ribbon Panel showed that between 2007/08 and 2017/18, provincial revenues per capita have increased by 2 per cent. Over the same time period, municipalities have experienced significant revenue growth of 48 per cent per person and continue to have the second-highest per capita expenses in the country.