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But the Rural Municipalities of Alberta (RMA) warned that the models under considerationwould cause “potentially devastating impacts on rural Alberta” and could cost rural municipalities more than $290 million in 2021 alone.
Allard said Monday the government would not be choosing any of those previous models.
Instead the government estimates its three-year plan will save the industry between $81 and $84 million.
“These measures are intended to provide much needed certainty to industry investors, municipalities, and other taxpayers for the next three years,” Allard said.
Meanwhile, Allard said the government will be startinga longer-term review of the system, including the ongoing issue of energy companies’ unpaid property taxes.
Tim McMillan, president and CEO of Canadian Association of Petroleum Producers, said the property assessment values being used under the current system are not accurate so he doesn’t view the changes for the next three years as a tax break.
“This is an interim measure, as we’re working to correct a broader system issue that has built up over a very long period of time,” he said.
RMA president Al Kemmere said he hasn’t crunched the numbers yet to see exactly how much municipalities will lose under this plan but said it will be “nowhere near what we were looking at under the proposals.” He said he believes members of the association are willing to do their part.
Kemmere saidunpaid taxes continues to be his organization’s top priority and that some members are on the cusp of not being able to pay their bills. Municipalities estimate they are owed approximately $173-million.
