News and Insights

Tax Alert | Alberta Oil & Gas Property Tax Assessment Model Review

Tax Development Aug 28, 2020

The Rural Municipalities of Alberta (RMA) has recently participated in a Government of Alberta-led review of the assessment model for oil and gas properties. This review process lasted several months and focused on the current assessment model of regulated assessment properties, such as but not limited to, wells and pipelines. The purpose of the review was to “modernize” the assessment model to enhance competitiveness within the oil and gas industry while ensuring municipal viability.

The Alberta Ministry of Municipal Affairs has finalized four scenarios impacting well and pipeline assets, aimed at reducing the property tax burden of oil and gas producers in Alberta. The four possible scenarios are described below:

Scenario A 7% overall assessment decrease
Scenario B 9% overall assessment decrease
Scenario C 14% overall assessment decrease
Scenario D 20% overall assessment decrease

The outcomes for each of these Alberta-proposed scenarios would be a significant reduction to the overall rural municipal assessment base. The impacts of each scenario by region will vary significantly. Certain municipalities may experience a benefit from the changes, while some may experience a large loss in assessment value and related tax revenue.

For further information on these proposed changes, access the RMA Assessment Model Review – Outcomes Summary to learn more.

More Information

If you have any questions about how any of these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirectTM line at 1.800.667.1600.