On Monday, the provincial government of Canada’s Alberta said that the struggling oil and gas firms in the region will get a three-year municipal property taxes breaks starting in 2022, for the land of their drilling wells or pipelines.
Other than that, the Alberta government would also eliminate a provincial drills tax and curb property tax assessments on less productive wells.
In the first year, all the measures amounted to between CAD81-84 million (USD61.4-63.69 million).
According to Al Kemmere, president of Rural Municipalities of Alberta, the tax break would maintain the balance between helping the competitiveness of the region’s energy companies and maintaining the viability of municipalities.
Alberta had previously considered assessment reforms, but those were feared to be more costly to the tax rolls.
During the week ended October 12, the Canadian Association of Oilwell Drilling Contractors noted 48 active weeks in Alberta, a massive slide compared to 97 a year earlier. This increased risks that many of Canadian equipment would permanently fall out of service.
