The UCP government is giving energy companies tax breaks in an effort to attract investment..But representatives of Alberta municipalities say still more needs to be done to make energy companies pay taxes on what they own..The government will give energy companies an exemption from property taxes for three years when drilling new wells and building new pipelines. The government will also eliminate the Well Drilling Equipment Tax for new drills..The UCP will also lower assessments for less productive oil and gas wells while continuing the recently introduced 35 per cent assessment reduction on shallow gas wells for three years..“We are acting now to encourage new oil and gas development that will create jobs and boost Alberta’s recovery. Alberta needs to be as competitive as possible to attract investment into our communities. We know our municipal partners are committed to do their part to create jobs and support Albertans through this challenging economic time. We are working to secure a brighter future for our province by supporting both industry and communities,” said Municipal Affairs Minister Tracy Allard..Al Kemmere, president of the Rural Municipalities of Alberta, said the deal was a first step, with more needing to be done on the issue of companies not paying their tax bills..In 2018, that figure stood at $81 million, more than doubling to $173 million last year..He said the deal will be a “challenge” to sell to his members..“But I’m, sure they will come forward and do their part for the economy,” said Kemmere at the Monday press conference..He added unless a solution is found on the unpaid taxes, “all of this will be for naught.”.TimMcMillan, president and CEO, Canadian Association of Petroleum Producers, said the deal was pragmatic..“This will be impactful for attracting investment into Alberta,” he said..“Municipal taxes and assessments for oil and natural gas are one of the biggest competitive issues facing this province today. The Alberta government’s action to incent new drilling and provide relief to mature wells is a crucial step to help restore investor confidence and preserve and create jobs for Albertans.”.Cypress-Medicine Hat UCP MLA Drew Barnes has said this issue in ones of the greatest concerns his constituents have..“To me, this looks like a compromise,” Barnes said..“But this is an example of the problem Alberta is now in – with a huge loss of our tax base, and Ottawa continuing not to help, citizens are going to have to pay more and receive less services.”.“Companies need to pay their taxes and we also need big spending rural municipalities to tighten their belts because you can’t draw blood from a stone,” said Franco Terrazzano, Alberta Director for the Canadian Taxpayers Federation..“The real solution to our challenges is trying to get our economy firing on all cylinders again and get people back to work.”.Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.TWITTER: Twitter.com/nobby7694
The UCP government is giving energy companies tax breaks in an effort to attract investment..But representatives of Alberta municipalities say still more needs to be done to make energy companies pay taxes on what they own..The government will give energy companies an exemption from property taxes for three years when drilling new wells and building new pipelines. The government will also eliminate the Well Drilling Equipment Tax for new drills..The UCP will also lower assessments for less productive oil and gas wells while continuing the recently introduced 35 per cent assessment reduction on shallow gas wells for three years..“We are acting now to encourage new oil and gas development that will create jobs and boost Alberta’s recovery. Alberta needs to be as competitive as possible to attract investment into our communities. We know our municipal partners are committed to do their part to create jobs and support Albertans through this challenging economic time. We are working to secure a brighter future for our province by supporting both industry and communities,” said Municipal Affairs Minister Tracy Allard..Al Kemmere, president of the Rural Municipalities of Alberta, said the deal was a first step, with more needing to be done on the issue of companies not paying their tax bills..In 2018, that figure stood at $81 million, more than doubling to $173 million last year..He said the deal will be a “challenge” to sell to his members..“But I’m, sure they will come forward and do their part for the economy,” said Kemmere at the Monday press conference..He added unless a solution is found on the unpaid taxes, “all of this will be for naught.”.TimMcMillan, president and CEO, Canadian Association of Petroleum Producers, said the deal was pragmatic..“This will be impactful for attracting investment into Alberta,” he said..“Municipal taxes and assessments for oil and natural gas are one of the biggest competitive issues facing this province today. The Alberta government’s action to incent new drilling and provide relief to mature wells is a crucial step to help restore investor confidence and preserve and create jobs for Albertans.”.Cypress-Medicine Hat UCP MLA Drew Barnes has said this issue in ones of the greatest concerns his constituents have..“To me, this looks like a compromise,” Barnes said..“But this is an example of the problem Alberta is now in – with a huge loss of our tax base, and Ottawa continuing not to help, citizens are going to have to pay more and receive less services.”.“Companies need to pay their taxes and we also need big spending rural municipalities to tighten their belts because you can’t draw blood from a stone,” said Franco Terrazzano, Alberta Director for the Canadian Taxpayers Federation..“The real solution to our challenges is trying to get our economy firing on all cylinders again and get people back to work.”.Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.TWITTER: Twitter.com/nobby7694
