The Community
Press 115 Years of Telling YOUR Story
Volume 115 Issue 37
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Wednesday, March 22, 2023 s
Province devises new strategy to address unpaid oil and gas taxes Leslie Cholowsky Editor
On Monday, March 20, the Province announced a new initiative designed to help Alberta municipalities deal with oil and gas property tax arrears. Companies will now have to confirm that their unpaid municipal taxes across the province do not exceed a maximum threshold allowed or that they have a repayment agreement in place whenever they apply for new licences or for licence transfers because they’re seeking to sell their assets. It’s a measure designed to help municipalities reduce the burden of unpaid taxes, and, the Province says, reassure municipalities and Albertans that companies are financially healthy and able to meet their tax obligations. The Rural Municipalities of Alberta (RMA) says this is a positive step forward. “The RMA is pleased to see the province taking action to hold oil and gas companies accountable for paying property taxes. “Although only a small number of companies avoid their property tax payment obligations, this issue has had major fiscal impacts on rural municipalities across Alberta. As 41 per cent of unpaid taxes are owed by companies that are currently operating, we are optimistic that this change will have an immediate positive impact in rural Alberta. “We look forward to working with the AER and relevant ministries to determine how our members can support the AER in enforcing this new requirement,” says Paul McLauchlin, president, Rural Municipalities of Alberta. Under Alberta’s liability management framework, which launched in 2020, the AER revised their licence eligibility requirements to include a more holistic assessment of a company’s financial health that is applied through the life cycle of an asset. The new directive strengthens the AER’s approach by making payment of municipal taxes a necessary and mandatory condition for approval, based on available data. The maximum threshold will be determined after reviewing the AER’s analysis of current licensee information related to unpaid municipal taxes, and in consultation with Municipal Affairs and Energy. Municipal Affairs and the AER will work together to create an annual list of companies whose unpaid municipal taxes exceed the threshold amount. Companies on this list will be targeted by the AER to provide proof of tax payment. The departments of Energy and Municipal Affairs have worked together on this new initiative.
Curling Canada Volunteer of the Year Jeff Northey recently won an all expenses paid trip to the Brier, as well as the honour of being chosen as Volunteer of the Year by Curling Canada. Jeff and his wife Monica enjoyed the trip of a lifetime. See full story Page 2. CURLING CANADA PHOTO