Below the Drill

Overview

In recent years, the Government of Alberta has implemented several policy initiatives to reduce oil and gas industry costs at the expense of municipal revenue, resulting in a loss of $332 million in rural municipal tax revenue between 2021 and 2023. While RMA members have long supported the industry, ongoing revenue erosion threatens municipal viability. 

Reductions in municipal revenue are a growing concern for RMA, as rural municipalities have limited ways to generate income and declining provincial grants. Sustainable funding is vital for operations and infrastructure, like roads and bridges that support Alberta’s oil and gas industry. When policies such as the removal of the Well Drilling Equipment Tax or unpaid industry taxes cut into revenue, it’s not just numbers—it impacts roads, essential services, and the future of our communities.

Stay tuned for weekly updates, digging “Below the Drill” to uncover how provincial policies are impacting municipal revenues and the future of rural Alberta. The four policies that will be explored over the next five weeks are:

• The removal of the Well Drilling Equipment Tax (WDET)
• The ongoing challenge of unpaid municipal taxes by the oil and gas industry
• The three-year holiday on newly drilled wells
• The 35% reduction in assessment on shallow gas wells

Get Involved

It’s time for a balanced approach to oil and gas policies—one that doesn’t leave municipalities struggling. Contact your local MLA and tell them it’s time for fair policies that support municipalities and protect your community’s future.