Unpaid property taxes from oil and gas companies – double since last year

Rural Municipalities of Alberta President Al Kemmere says, “We don’t have the tools that we normally have to collect taxes from other people that choose to not pay their property taxes, those same tools do not apply and that’s where – do we have a plan? It’s hard to say, our plan right now is to get face to face with the government and work through a discussion to build that plan.”

The RMA says the increase in unpaid taxes is a clear sign the problem is worsening.

The ongoing downturn in the oil and gas sector has resulted in many oil and gas companies being unable or unwilling to pay, according to Kemmere.

“The industry is in a tough spot, you know, they’ve had global items, global affairs that have been affecting their bottom line. So we understand the pressures that they’re in. This is not all oil and gas companies, there’s a majority of oil and gas companies are good contacts paying corporate citizens.”

Rural municipalities use the tax revenue to provide infrastructure and services needed by the energy sector to access natural resources.

While some municipalities are owed millions of dollars, Cypress County says it’s in a more fortunate position, according to Reeve Dan Hamilton.

“We did have about $1.3-million worth in the past year that we had to write off, but that was due to programs that the government proceeded with different areas of tax. So we did write some of it off but it was returned through the program.”

Cypress County says because of its position it doesn’t have to make tough decisions and can go ahead with upcoming projects as outlined in the budget.

But other municipalities are struggling.

The RMA says if changes aren’t made to allow these municipalities to recover money owed to them, many will struggle to remain viable.

by Chantal Wagner

Unpaid property taxes from oil and gas companies – double since last year

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