+ RMA Rural Municipalities
of Alberta

Resolution 7-06S

Well Equipment Tax Rate Regulation

January 1, 2006
Expiry Date:
March 31, 2009
Active Status:
Municipal Governance and Finances
Vote Results:

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.


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:
Municipal Affairs
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