About Freehold Mineral Tax

Freehold Mineral Tax is:

• Assessed on revenue derived from production from freehold oil and gas properties.
• Assessed annually based on calendar year production.
• Levied on each owner of a petroleum or natural gas mineral right as shown on the estate fee simple Certificate of Title.
  

History:

• The tax has been levied since 1938.
• It was introduced to provide freehold monies for the province’s regulatory body (the Alberta Energy and Utilities Board).
• From 1938 to 1972 the tax was an acreage tax. The tax was assessed on petroleum, natural gas, coal and salt.
• From 1973 to 1982 the tax was assessed based on reserves.
• Since 1973 coal and salt are no longer taxed.
• Current freehold mineral tax legislation was introduced in 1983
  • Monies received go to the Province’s General Revenue Fund.
  • On average, the tax levied is 4 percent of revenues reported from freehold properties.
  • Tax is calculated annually on calendar year production in February of the following calendar year
  • Payment of the tax is due March 25 in the following calendar year.

Mineral rights:

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Freehold Mineral Tax Frequently Asked Questions

Freehold Mineral Tax
Answers to common questions about freehold mineral tax, including calculation and reporting. Read More

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Questions and answers pertaining to the initiative to streamline Freehold Mineral Tax through enhanced technology. Read More