Edmonton Journal

NDP launches tax relief program for rural areas

New initiative will provide credits to municipali­ties for oil and gas properties

- CLARE CLANCY cclancy@postmedia.com twitter.com/clareclanc­y

Alberta’s municipal affairs minister announced a tax relief program for rural communitie­s Wednesday while promising fiscal restraint to balance the provincial budget.

“I won’t mince words — difficult decisions will have to be made and we will have to tighten our belts to return Alberta to fiscal balance,” Shaye Anderson said in an address at the Alberta Associatio­n of Municipal Districts and Counties (AAMDC) annual convention at the Shaw Conference Centre.

The organizati­on focuses on advocacy and local governance for its 69 member municipali­ties.

Anderson announced a program dubbed Provincial Education Requisitio­n Credit (PERC), which will provide credits to municipali­ties on the education component of their property tax for oil and gas properties.

He said the 2014 economic downturn left a number of oil and gas properties abandoned.

“And that put municipali­ties in a tough spot,” Anderson told reporters, explaining the wells are taxed until the Alberta Energy Regulator changes the property status to “abandoned,” which can take years.

The PERC program — with a $10-million cap annually — will operate for five years, starting retroactiv­ely from 2015. Cash will come from the Alberta School Foundation Fund managed by the education department.

“We won’t know the true cost until everyone ... sends their informatio­n,” Anderson said.

United Conservati­ve Party municipal affairs critic Pat Stier said he’s pleased with the developmen­t.

“This has been an ongoing issue for some time now. It was certainly questionab­le that cash-strapped municipali­ties were expected to pay taxes on delinquent properties,” he said in a statement via email.

Al Kemmere, the president of AAMDC, said the cost of an abandoned oil and gas property to a community can range anywhere from $30,000 to $400,000.

He estimated about 50 municipal districts and counties will be eligible for the program.

“It depends on the level of activity and the history of that activity,” he said, adding it has affected bottom lines across Alberta, forcing municipali­ties to modify services or raise taxes.

“Neither of those are palatable or good solutions for the long-term.”

Relationsh­ips between rural municipali­ties and the NDP government have improved over the past two years, Kemmere said.

“We’re seeing government out in rural communitie­s more and more,” he said. “It’s never been perfect, it never will be perfect, but we’ve come a long way.”

Anderson assured convention participan­ts he’s committed to rural engagement.

Premier Rachel Notley is slated to address the convention Thursday. The convention ends Friday.

 ?? IAN KUCERAK ?? Alberta Municipal Affairs Minister Shaye Anderson is promising fiscal restraint.
IAN KUCERAK Alberta Municipal Affairs Minister Shaye Anderson is promising fiscal restraint.

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