Unpaid taxes by oil companies a growing issue for rural areas

By MEDICINE HAT NEWS on March 10, 2022.

https://www.medicinehatnews.com@MedicineHatNews

The amount of unpaid property taxes on oil and gas wells owed to counties in Alberta grew in 2021 even as revenue and profits in the energy sector grew, according to a new survey conducted by the Alberta Rural Municipalities.

The situation in Cypress County however, appears to be lessening.

For the past three years, the lobby organization for municipal districts and other rural jurisdictions has provided a total figure they say relates to unpaid tax bills to oil patch companies.

The figure for 2021 was $253 million, up 3.3 per cent from 2020, and about one and a half times the 2019 total.

A message from its president said as the sector returns to profitability and rising energy prices are set to balance the provincial budget, counties are still bearing the burden.

“Not only is this unfair to municipalities, it is unfair to every rural taxpayer who must pay more or receive fewer services to off-set those taxes not being paid by the oil and gas industry,” said RMA head Paul McLauchlin. “It was unfair when the industry was struggling, and it’s even more unfair now.”

Cypress County recorded $2.4 million in unpaid taxes in 2018, but at Dec. 31 last year, was only owed about $225,000 on such linear infrastructure, equal to about 1 per cent of the county’s tax revenue.

“We are fortunate to have an excellent relationship with out oil and gas partners, which has resulted in a high percentage of taxes pair,” said county manager Tarolyn Aaserud. “We recognize this remains a province-wide-issue.”

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