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By rdnewsNOW Staff

ANSWERING THE CALL

Alberta establishing working group to address unpaid oil and gas property tax challenge

Mar 25, 2025 | 11:16 AM

In response to calls from the Rural Municipalities of Alberta (RMA) and Alberta Municipalities (ABmunis) for action, the Government of Alberta is establishing a working group with municipal partners to develop an accountability strategy for unpaid oil and gas property taxes.

Earlier this month, the RMA released the results of its latest member survey, in which rural municipalities reported that as of Dec. 31, 2024, at least $253.9 million in municipal property taxes had gone unpaid by oil and gas companies. ABmunis added its voice to the call for action call shortly after.

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On March 24, Alberta answered the call and announced it will establish a working group to develop recommendations and strategies to recover unpaid taxes. These may include closing loopholes and establishing stronger partnerships and communication between the energy industry, rural municipalities and the government.

“Whether you like it or not, you have to pay your taxes. 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,” commented Ric McIver, Minister of Municipal Affairs.

The government says most oil and gas companies pay their taxes, with about $1.5 billion in municipal taxes paid by energy companies in 2023. Those that haven’t, however, have caused shortfalls to municipal revenues, an issue this working group is meant to resolve.

“Rural municipalities continue to face the long-standing issue of unpaid oil and gas property taxes, putting immense strain on their financial sustainability,” said Kara Westerlund, president of the RMA. “We are encouraged by the willingness of both Alberta Municipal Affairs and Alberta Energy and Minerals to collaborate with RMA to form the Property Tax Accountability Strategy working group.”

The working group comes in addition to the development of a mature asset strategy to address the changing nature of the energy industry and encourage more energy and economic development in the parts of Alberta with mature oil and gas assets, officials say.

As a part of the development of this strategy, the government says it’s been engaging with partners such as industry groups and rural municipalities. More information on the mature asset strategy engagement is expected to be announced in the coming weeks.