https://www.vermilion-river.com/mrws...ia_Release.pdf
Impacts of Assessment Model Changes on the County of Vermilion River
County of Vermilion River, Kitscoty, AB – The County of Vermilion River was notified this week of
changes proposed by the Province of Alberta to reduce the property tax of oil and gas
companies through changes to the assessment model for regulated properties in this sector.
Council and administration are extremely concerned about the serious impacts of this
decision because it will mean an increase in residential property tax, reduction of
services, or combination of both to make up for this lost revenue.
While the stated intention of this decision is to increase the competitiveness of oil and gas
companies in this difficult economy, these changes will disproportionately benefit multinational
oil and gas companies and harm smaller companies and residential ratepayers.
In addition to this, there are no regulations to ensure that this money from the reduction in taxes
will be spent in Alberta to improve the struggling oil and gas sector here. For these reasons there
seem to be few benefits to outweigh the added costs that county residents will be faced with.
Based on the information provided to the County of Vermilion River from the Province, the
impacts to the County of Vermilion River could indicate a loss of up to 9% of tax revenue, which
equates to a loss of up to $3.9 million in overall lost revenue for the County of Vermilion River in
the first year.
To compensate for the loss of industry assessment and corresponding tax revenue, the County of
Vermilion River will have to adjust operations in one or a combination of the following:
Increase the Residential Mill Rate up to 109.6% AND/OR
Increase the Non-Residential Mill Rate up to 25.9% AND/OR
Cut services by up to 45.2%
If this proposed change is passed YOU WILL BE
IMPACTED – financially through property taxes
and in a loss of services from the County of
Vermilion River. Many services provided by the
County would need to be eliminated, County
support of other municipalities or organizations
will have to be decreased or terminated, and
there would be an increase in property taxes for
residents and businesses in the County.
This is 109%, the MD of Wainwright is forecasting a 393% increase.
http://www.mdwainwright.ca/
Paying $3000 now in property tax means $14790.00 on the next tax roll?
All this means is some very rich realtors are going to grab properties when people are unable to pay over $1000 a month on property tax.
M.D. of Wainwright Stands To Lose 10 Million Dollars
The M.D. of Wainwright No. 61 is extremely concerned with and opposed to the changes to the assessment model for regulated properties such as wells and pipelines that was announced recently. This adjustment will affect the linear assessment within the M.D. of Wainwright. We have been told this is to enhance industry’s competitiveness. The M.D. of Wainwright is in support of industry in the area, but this change in assessment will jeopardize Rural Alberta.
The assessment model is the method the province gives municipalities to raise revenues through taxation. Based on the potential changes presented by the province, the M.D. of Wainwright is poised to lose between $9,453,925 and $6,979,777, or between 30% and 22% of our total tax revenue.
To offset this loss the M.D. of Wainwright could be required to increase the residential tax rate by between 290% and 393% and increase the non-residential tax rate by between 37.4% and 58.4%. Raising tax rates to off-set the impacts of the assessment model change will have the effect of simply transferring taxes from industry to other businesses and residents. This draconian change to the assessment model will force municipalities to enact a reduction in service levels and intermunicipal collaboration agreements, as the above increases are not realistic for our ratepayers. These changes will impact not only our municipality, but the entire region.
In addition, municipalities requisition amounts for schools and senior housing using the assessment model. Those rates will also need to be adjusted going forward to offset the revenues lost, or those services will be reduced.
There is no guarantee that the tax savings experienced will be put back into the local economy, as a majority of the benefit will profit global companies and their shareholders, not M.D. of Wainwright residents. This is in direct contrast to what a municipality does, which is work hard to keep dollars in our community.
The M.D. of Wainwright is giving you all this information in hopes you will be able to help us save Rural Alberta. Once this legislation is passed, we are heading down a path that will result in the decay of a viable Rural Alberta. We have been told we have until the middle of August to voice our displeasure.
For more information please contact the M.D. office at 780-842-4454 or visit our website at
www.mdwainwright.ca where council member contacts and staff contacts are posted.
Sincerely,
Municipal District of Wainwright No. 61 Council
This needs to be fought.
What are we doing?
The County is contacting Premier Jason Kenney, Municipal Affairs Minister Kaycee Madu, Energy
Minister Sonya Savage and MLA Garth Rowswell to express our concerns over these changes.
The County is also supporting neighbouring municipalities and the Rural Municipalities of Alberta.
What can you do?
Please let your government officials know your thoughts on this issue.
o Premier Jason Kenney
780.427.2251 premier@gov.ab.ca
o Minister of Municipal Affairs, Kaycee Madu
780.427.3744 minister.municipalaffairs@gov.ab.ca
o Minister of Energy, Sonya Savage
780.427.3740 minister.energy@gov.ab.ca
o MLA Garth Rowswell
780.842.6177 vermilion.lloydminster.wainwright@assembly.ab.ca
Please call your local Councillor if you have questions about this or want additional
information. A list of Councillors can be found on the County website.
Read the RMA position paper on this Assessment change under Summary Document
and Position Statement.
The final decision by the Government of Alberta and Premier Jason Kenney on this proposal is
expected by mid to late August so we encourage you to take action now.
Dale Swyripa, Reeve
County of Vermilion River
- 30 -
Media inquiries may be directed to:
Communications
County of Vermilion River 780.846.2244
communications@county24.com