About 60 per cent of tax accounts in Cypress County were paid on time last week at the county’s new tax deadline of June 30, even though penalties won’t be applied until late fall.
Those who did pay, however, represent smaller tax accounts, according to information presented in a municipal services report at Tuesday’s county council meeting in Dunmore.
Only about 40 per cent of tax revenue, or $15 million, has been received, while $21 million is outstanding. Of the amount due, more than half is owed by four unnamed but substantial entities that have a combined tax bill of about $12.4 million.
In early 2020, the county moved up its tax due date up in hopes of better managing cashflow and avoiding the fallout of potential defaults in the struggling natural gas sector, which forms the majority of the county’s tax assessment base.
Council later added a no-penalty period extending collection date until November 30 to account for the financial stress of pandemic response.
Last year, two shallow gas producers entered into agreements to pay property taxes, then due in mid-November by February 2020 without penalty. That was successfully executed, the county reported in May, and the penalties were waived.
The City of Medicine Hat’s tax date legally remains as June 30, but council voted in May to defer amounts owed until Sept. 30. Tax notices will be mailed on July 24.
