Airdrie-Cochrane MLA Peter Guthrie says gross exaggerations of massive tax hikes by local leaders isn't helping an effort to provide relief for the energy sector.
The Rural Municipalities of Alberta, including Rocky View County, have been warning huge tax increases and possible core service cuts could take place as a result of Alberta Municipal Affairs' current review of the assessment model used to determine taxation levels.
"A review of this kind is well overdue and its intention is to evaluate the fairness and competitiveness of the current model," he explains in a statement.
“One of the keys to economic recovery for Alberta is to provide an environment that is attractive for investment. Over several years, the oil and gas sector has observed increases in red tape and costs of doing business including a tax regime that has caused bankruptcies and investment to flee the province in droves. Our government is looking to reverse that trend and expect all levels of government to do their part to allow a competitive environment for all business."
"No decisions have been made at this time as consultation is still ongoing but gross exaggerations and threats of massive tax hikes by local leaders are not helpful."
Guthrie says all Alberta government departments, including municipal governments, will be exploring cost savings measures and ways to stimulate the economy.
Alberta Municipal Affairs says Alberta's assessment model for linear taxation has not been updated since 2005. Factors such as asset depreciation, base costs and land assessment are being used to create potential new models.