The province has agreed to form a working group to tackle unpaid oil and gas taxes. A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., in this October 2016 file photo.--cp file photo
@MedicineHatNews
The province has agreed to a call from Alberta’s counties to form a new working group aimed at collecting back taxes owed by oil and gas companies.
Earlier this month Rural Municipalities Alberta called for new focus on a growing amount of unpaid property taxes of more than one-quarter billion dollars – owed to its members.
On Tuesday, Minister of Energy Brian Jean and Municipal Affairs Minister Ric McIver released announced a new working group with municipal representatives to “explore the issue in depth and investigate potential solutions to ensure municipalities are getting taxes they are due.”
RMA officials said they were encouraged by the formation of the “Property Tax Accountability Strategy working group.”
“Rural municipalities continue to face the longstanding issue of unpaid oil and gas property taxes, putting immense strain on their financial sustainability,” said RMA president Kara Westerlund.
“Together, we can create solutions that address this issue and restore a partnership between municipalities, government and industry.”
This month, RMA stated that the problem is accelerating despite several years of relative stability in the oil and gas sector.
At the end of 2024, a total of $254 million was owed to Alberta counties or municipal districts in unpaid property tax on wells and related infrastructure. That includes $67.3 million from the last tax year, up from $42.9 million in 2023.
Figures presented to Cypress County council last December state the county around Medicine Hat is owed $985,000 specific to oilfield operators, including $360,000 from the 2024 tax year.
About $46,000 of that relates to the education property tax requisition of companies that are insolvent, a portion of which is forgiven under a provincial assistance program.
Monday’s release states that most petroleum companies are in good standing on taxes, and paid about $1.5 billion in local property taxes on time in 2023.
“Whether you like it or not, you have to pay your taxes,” said McIver. “We’re committed to working with our municipal partners to ensure that bad actors in the oil and gas industry are held to account, and that municipalities are paid the property taxes they are due.”
Counties have long complained that traditional tax collection avenues don’t work well on oilfield accounts, as seizure or auction might burden municipalities with large environmental cleanup liabilities.
Previous measures included increasing the ability of local government to place liens on property and allowing energy regulators to deny new licences
The province has also previously said it has ordered study of linear taxation assessment procedures.
The UCP blows more money on one sided panels and committees, which are stacked with their Conservative friends. In Alberta, the UCP lost Alberta hundreds of millions of dollars by forsaking collecting property taxes from the oil companies in Alberta, and this is why municipalities in Alberta must charge increased municipal property taxes. So far, the UCP have made well over $80 billion in very costly debacles and mistakes. If the UCP got oil companies in Alberta to pay their property taxes to begin with, this wouldn’t be an issue.
The UCP blows more money on one sided panels and committees, which are stacked with their Conservative friends. In Alberta, the UCP lost Alberta hundreds of millions of dollars by forsaking collecting property taxes from the oil companies in Alberta, and this is why municipalities in Alberta must charge increased municipal property taxes. So far, the UCP have made well over $80 billion in very costly debacles and mistakes. If the UCP got oil companies in Alberta to pay their property taxes to begin with, this wouldn’t be an issue.