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Well Equipment Tax Rate Regulation

Date:

January 2006

Expiry Date:

March 2009

Current Status:

Archived

Sponsors:

 

District:

 

Year:

2006

Convention:

Spring

Category:

Municipal Governance and Finances

Status:

Archived

Vote Results:

Carried

Preamble:

WHEREAS the Municipal Government Act, Well Drilling Equipment Tax Rate Regulation 51/2002 sets the rate at which Municipalities can tax well drilling equipment; AND WHEREAS this regulation expires on December 31, 2006; AND WHEREAS Municipalities earn a minimal amount of tax from wells drilled compared to the costs incurred to maintain infrastructure used in the process of drilling the wells;

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta’s Association of Municipal Districts and Counties request the Provincial Government of Alberta review this regulation and increase the rate of Well Drilling Equipment Tax considerably to help Municipalities offset the costs incurred for infrastructure maintenance resulting from well drilling.

Member Background:

No background information was submitted with this resolution.

RMA Background:

The AAMDC currently has no resolutions in effect with respect to this issue.

Government Response:
None reported.

Development:

From August to October 2007, Alberta Municipal Affairs and Housing conducted consultation on the Well Drilling Equipment Tax Regulation. This focused on updated the rates based upon increases in road construction costs since 1981. The new rates began phasing in on January 1, 2008 and will continue until December 31, 2010. At this point, a review will be conducted to maintain or amend the levels of taxation.

Provincial Ministries:

None reported.

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
None reported.

Internal Notes:

None reported.