News release

Tax Agreement for Dartmouth Refinery Continues for Five Years

Service Nova Scotia and Municipal Relations (Oct. 2000 - March 2014)

The Imperial Oil refinery in Dartmouth will have predictable, stable tax levels for another five years with the province's decision to extend a taxation agreement between the refinery and Halifax Regional Municipality.

"It is important that we have a competitive business environment in the province that allows us to provide good jobs," Service Nova Scotia and Municipal Relations Minister John MacDonell said today, March 7. "Keeping the current agreement for another five years maintains stability for the refinery, is predictable to both sides, and is ultimately in the best interest of Nova Scotians."

After consulting with HRM and Imperial Oil to determine each party's position and attempting to arrive at an agreement, the province has decided to extend the legislated arrangement effective April 1.

Imperial Oil continues to pay the highest per-barrel rate of all refineries east of Manitoba at $41 per barrel. HRM will receive a payment of $3.6 million annually in property taxes and Imperial Oil will pay the municipality $450,000, over two installments, in April 2012 and April 2014.

"We believe the current arrangement of per-barrel rate is appropriate and fair for this industry," said Mr. MacDonell. "Although we are continuing with the status quo, we will continue to monitor the level of taxation for the refinery and may consider a change if it is warranted."

Imperial Oil contributes to the local economy, has about 200 employees, and supplies the majority of Nova Scotia's fuel. Imperial Oil has also made significant community investments in science and education, the environment, arts, volunteerism and diversity.

A number of independent sources, including a recent Conference Board of Canada report, say Atlantic Basin refineries such as Imperial Oil are facing challenges because of global competition.