MOUNTAIN VIEW COUNTY - Total designated industrial property assessments in the county saw an overall decrease of 1.45 per cent per cent or $26.6 million in 2020 compared with 2019, including a 4.7 per cent decrease in the assessed value of oil and gas wells, officials said.
The update was presented by officials from the Municipal Assessment and Grants Division, Assessment Services Branch (ASB) of Alberta Municipal Affairs.
The delegation appeared by Zoom before council during the recent regularly scheduled council meeting.
Designated industrial properties fall under two categories. Linear properties include pipeline/gas distribution, wells, telecommunication and cable distribution, electric power systems, electric power generation and railways.
Industrial properties include facilities regulated by the Alberta Energy Regulator, the Alberta Utilities Commission, and Canada Energy Regulator such as well sites, batteries, gas plants and compressor stations.
There were a number of changes in the linear property total assessments in the county in 2020 compared with 2019:
• Pipeline assessment was up 1.85 per cent or $10.9 million to $604 million.
• Wells assessment was down 4.7 per cent or $24.1 million to $491 million.
• Electric power systems assessment was up 1.51 per cent or $1.3 million to $84.9 million.
• Electric power generation assessment was down 0.5 per cent or $1 million to $29.4 million.
• Railway assessment was up 0.75 per cent or $100,000 to $12 million.
• Telecommunication assessment was up 3.69 per cent or $300,000 to $8.5 million.
• Cable distribution assessment was down 5.79 per cent to $700,000.
The top 10 designated industrial ratepayers in the country in 2020 were Nova Gas Transmission Ltd., NAL Resources Limited, Taylor Processing Inc., Whitecap Resources Inc., Taqa North Ltd., Loyal Energy (Canada) Operating Ltd., Bonavista Energy Corporation, Ember Resources Inc., Altalink, and Transglobal Energy Corporation.
The companies had a combined assessment value in the county of $1.26 billion in 2020, up from $1.16 billion in 2019, or an overall change of $98.4 million.
Regarding industrial growth, building, structures and lands assessment was $105.8 million in 2020, down from $109.1 million in 2019 and $108.6 in 2018; machinery and equipment was $469 million, down from $480 million last year; while linear assessment was $1.23 billion, down from $1.24 billion in 2019 and $1.3 billion in 2018.
A number of government of Alberta measures have recently been put in place that will impact the municipality's tax revenues in 2021 and 2022:
• New wells and pipelines will be assessed at zero for three years starting in 2020.
• A new depreciation of marginal wells based on low production will start in 2021.
• Shallow gas wells are receiving a 35 per cent reduction in assessment starting in 2019.
• The well drilling equipment tax rate was set at zero effective January 1, 2021.
Council received the report as information.
