The Town of Redcliff has approved a $2,100 tax refund to the City of Medicine Hat’s Gas utility as part of a provincial program to reduce the tax burden on natural gas producers.
The city and other rural municipalities that are home to shallow gas wells have the ability to cancel education portions on certain wells, equal to about 35 per cent of total tax bill, but each need to approve it at the local level.
For Redcliff, that occurred at its Oct. 15 meeting, the minutes of which show the adjustments for City of Medicine Hat property is a reduction of $1,323 for wells and $825 for pipeline.
One other company, New North Resources, also benefits from the tax cancellation. Its 2019 tax bill will be reduced by $588 on wells and $550 on qualifying pipelines for a total of $1,139. It also had a late fee of $188 quashed.
The province will reduce its requisition related to the education portion of property tax from participating municipalities, leaving them at no loss. The program across Alberta is expected to cost $23 million, revenue that would be supplanted in the Alberta Education budget by general revenue.
The City of Medicine Hat council agreed on Oct. 22 to take part, meaning that its own tax bill on urban wells and pipes would fall by about $35,500.
Canlin Energy ($3,700) and New North ($1,900) would also benefit from the city’s measure.
