The 35% property tax reduction on shallow gas wells and pipelines will be extended to the 2021, 2022 and 2023 taxation years.
This relief will help shallow gas producers cut costs, protect jobs and remain competitive in the face of economic pressures affecting the natural gas industry. The province will continue to work on updating the assessment model during this time.
Why it’s needed
While all property tax rates are determined by the municipalities, the model used to determine the linear property well and pipeline assessments have not been updated since 2005 and do not reflect the circumstances faced by many shallow gas producers with older, lower productivity assets.
The situation has been made worse by low commodity prices, the global economic contraction and the COVID-19 pandemic.