Cypress County Reeve Dan Hamilton explains the impact on the province's proposed assessment changes on Cypress County ( Tiffany Goodwein/ CHAT NEWS)

By Tiffany Goodwein

Proposed oil and gas tax break an ‘insurmountable’ impact says Cypress County

Aug 4, 2020 | 4:43 PM

CYPRESS COUNTY, AB – Cypress County is sounding the alarm over the province’s proposed assessment changes, that would give oil and gas companies a break on their municipal property taxes, thus reducing the amount of tax revenue available for the county.

“We have not been consulted on this. We have not had the opportunity to express our concerns and contribute to the creation of a different solution. We are here today to ask the province to hear from us and understand the potential impacts, these proposals are bringing,” Cypress County Reeve Dan Hamilton said.

At a press conference Tuesday Reeve Hamilton noted the county stands to suffer a 16 per to 22 per cent drop in tax revenue. In the first year, the proposed changes go into effect the county could lose as much as $7.8 million.

The county currently houses 30 per cent of the shallow gas wells in question, according to Hamilton.

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To make up the lost revenue, the county says significant tax hikes are likely.

The county projects residential taxes to increase 132.2 per cent to 181.1 per cent, under the proposed changes. Business and industrial taxes could increase by 39.9 per cent to 63.3 per cent. , and farmland taxes, according to the county could see a rate increase by as much as 1,550 per cent.

” We’re not talking about an incremental tax increase here. We are talking about a significant and for most people, insurmountable tax increase,” Reeve Hamilton said.

The proposed changes would require cuts to county services, such as road maintenance, infrastructure repairs, bylaw enforcement, and cuts to non-subsidized recreation.

The county is urging concerned residents to write to MLA Drew Barnes or MLA Michaela Glasgo about the impact the proposed changes will have.