RMA says province needs to immediately address unpaid well taxes

By Collin Gallant on March 14, 2025.

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Alberta’s counties and municipal districts say the problem of unpaid taxes on oil and gas wells is worsening even though the sector is relatively stable.

Rural Municipalities of Alberta states that unpaid property tax bills from petroleum producers totalled $67.8 million in the 2024 tax year, up from $42.9 million in 2023.

That brings to total amount owing to local governments that are RMA members to $253.9 million since the issue gained prominence in 2019.

“While we recognize and appreciate the Government of Alberta’s well-intentioned efforts to address unpaid oil and gas taxes, the problem continues to worsen,” stated RMA president Kara Westerlund in a release.

“Tweaks to the system have not worked. It is time for government to dedicate the time and resources needed to work with RMA and other stakeholders to solve this issue once and for all before it causes even more damage to rural communities.”

Rural elected officials and administrators have complained that penalties typically employed to collect unpaid taxes, such as auctioning off or seizing property, do not work in oilfield issues due to environmental liabilities involved in taking over sites.

The province began studying the issue in the early 2020s, offered traditional tax credits and holidays in order to promote new drilling during the pandemic, and is now revisiting assessment procedures.

“Unpaid property taxes are a pervasive issue that extends far beyond just a few isolated cases,” said Westerlund. “This problem is widespread, with responsibility falling on companies across the industry and impacting municipalities on a significant scale … it is a systemic problem with how the industry is regulated and held accountable, that requires immediate attention and collaborative action to resolve.”

The RMA states its collected data reveals that 10 unnamed companies collectively owe $67 million, including one with unpaid taxes of $27 million. In total 200 companies are delinquent to some degree.

No breakdown is provided on a county-by-county basis, but RMA’s Zone 1, including rural areas south of Calgary, appears to be less affected. Those counties are owed a total of $19.9 million, including $2.7 million from 2024.

Totals are highest for northeast Alberta, where $102 million is owed, and $24.5 million was added last year, followed by northwest Alberta ($63 million and $23.1 million respectively.

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