By Darren Rathwell

Province plans crackdown on rural energy sector taxes

Oct 28, 2021 | 3:38 PM

The Alberta government says it’s planning changes to push delinquent oil and gas companies to pay their tax bill, impacting rural communities across the province.

Under legislative amendments to the Municipal Government Act, municipalities would be allowed to seize the assets of energy businesses that haven’t paid their property taxes. However, companies would alternatively be given 120 days to negotiate a payment plan.

First reading of Bill 77 was passed by the Alberta Legislature on Thursday afternoon.

“This legislation is intended to help municipalities go after those companies who refuse to play by the rules. Bad actors who ignore the rules and don’t pay their taxes force everyone else to fill in the gaps – that’s not fair,” Ric McIver, minister of municipal affairs, said in a statement.

The Rural Municipalities of Alberta says rural communities across the province have struggled with tax collection from a small number of companies, leading to issues with service delivery and investing in infrastructure.

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In February, Cypress County chief administrative officer Tarolyn Aaserud said since 2018, the county has been unable to collect $2.4 million in outstanding oil and gas tax revenue.

A survey by the agency earlier this year showed the oil and gas industry owed a total of $425 million in unpaid taxes to rural towns.