Nisku, Alberta, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Over the past three years, provincial policy changes and inaction have stripped Alberta’s municipalities of $332 million in vital municipal tax revenue, according to the Rural Municipalities of Alberta (RMA). These policies, some of which were initially introduced to offset the impacts of the pandemic and reduce costs for the oil and gas industry, have left rural communities struggling to maintain essential infrastructure and services. Through the Below the Drill campaign, RMA is urging the Government of Alberta (GOA) to reconsider these policies and prioritize the long-term financial sustainability of rural municipalities.
“By building and maintaining massive road, bridge, and water/wastewater networks, rural municipalities provide the foundation for Alberta’s energy infrastructure, yet we’ve been forced to bear the financial brunt of provincial policy decisions to subsidize the oil and gas sector,” said RMA President Paul McLauchlin. “We understand the importance of supporting the industry, but these policies seem to be designed solely to cut costs for oil and gas companies, without consideration of how they may erode the very communities that help drive Alberta’s economy.”
The $332 million in lost revenue is attributed to the GOA’s removal of the Well Drilling Equipment Tax (WDET), the imposition of a three-year tax holiday on new wells, the 35% reduction in assessments on shallow gas wells, and the continued issue of unpaid taxes from the oil and gas sector. These actions have placed significant financial strain on rural municipalities, many of which are already facing declining provincial grants and limited alternative revenue sources.
“This is not just about taxes—it’s about the long-term viability of rural Alberta. Municipalities need stable revenue streams to support roads, bridges, and services that benefit both residents and the oil and gas industry. Instead of that, we’re seeing the implementation of policies that equate to a handout of companies, many of which, quite frankly, don’t need them,” McLauchlin added. “If the policies were designed to spur a particular type of growth or activity in specific regions, municipalities may be open to supporting them. Instead, we see broad industry subsidization, with no reporting or measurement of if or how the reduced tax payments led to more activity, or whether money saved was reinvested in Alberta.”
RMA will be releasing a series of reports over the next five weeks that highlight the financial impacts of these policies on rural municipalities. Each report will focus on a specific policy, providing detailed analysis of its effects from 2021 to 2023, along with recommendations to restore financial stability for Alberta’s municipalities.
For more information, please visit: RMAlberta.com/below-the-drill
About the Rural Municipalities of Alberta
The Rural Municipalities of Alberta (RMA) is a trusted and independent association representing Alberta’s 69 counties and municipal districts. Since 1909, RMA remains committed to empowering rural municipalities with strong, effective local governance. Through dedicated advocacy and a suite of valued business services, including cooperative procurement and group benefits through the Canoe Procurement Group of Canada and comprehensive coverage through RMA Insurance, we strive to strengthen and support rural Alberta. Learn more at rmalberta.com.
