MARCH 3, 2021
News Advertiser PAGE 13
www.NewsAdvertiser.com
Unpaid Property Taxes by Oil and Gas Companies Continues to Plague Rural Municipalities ONLINE LAND AUCTION
Michelle Pinon really is. News Advertiser We’re talking an exponential growth Oil and gas companies in Alberta of this liability really to the ratepayers currently owe approximately $245 of Alberta. The problem is that in order million in property taxes to rural to backfill this loss of cash flow we have municipalities. to look at our operations. We have to For Paul McLauchlin, President of the look at our capital replacement. We Dwayne & Valerie Hendel Rural Municipalities Association, have reserves, but our reserves are (RMA) said, “There’s been a 200 to intended to replace our capital. Closing 300 percent increase in unpaid taxes Our reserves exist to replace bridges Thursday, April 1, 2021 since 2019. That’s pretty significant. in our municipalities and to replace at 3:00 pm We’re talking a quarter of a million roads. In my county, Ponoka County, I dollars!” have 160 bridges with an average 1/4 Section NW 36-53-7-W4 He went on to say, “Fifty-seven replacement cost of $1 million dollars. I Approx. 110+ Acres Cultivated percent of companies that are operhave $160 million in bridge liabilities in Approx. 30 +/- Acres Pasture with well ating on the landscape are not payPonoka County and reserves are Directions: From Vermilion, North on ing their municipal taxes and we’re intended to replace those bridges in 10 Hwy 41 to Twp Rd 540, West 2 Miles. From Derwent, East on Hwy 45 to RR 71, looking for remedies through a RMA President Paul McLauchlin to 15 years. We need to have this cash South 2 miles. licensing top rate as well as the transfer flow available to us in order to provide the STEWART AUCTIONS of assets. services that we provide to our communities.” McLauchlin said they don’t have mechanisms under the 780-853-4725 While municipalities “write off” the debt owing from oil Municipal Government Act to take action because of a legis- and gas companies every year because they cannot operate a Vermilion, AB lative loophole and so they are unable to seize assets or put deficit, but ultimately, the money needs to come from somewww.stewartrealty.net liens on assets as it relates to unpaid oil and gas taxes.” where; and that somewhere is from ratepayers. “For example, The RMA, on behalf of its 69 member municipalities, has in Ponoka County it comes to an averbrought forward its concerns to the provincial government age of $800 per resident.” EVERY MONDAY! on several different occasions, but so far, there’s been no The bottom line is: “We need to Seniors Night action taken by the Province. address this issue to ensure that oil and Two Can Dine for “We’re looking to partner with the government to find gas companies pay taxes the same as solutions to ensure that we can drive this home, and regret- everyone else, and move forward on tably we’ve had to go to the press and have the public drive how to build strong rural industries and this home because this has been going on three years now. I communities.” Fresh Roast Beef know the government has other priorities, but this really With the RMA’s spring convention needs to be a huge priority because it affects every single only a week away, he expects it to be the EVERY FRIDAY rural Albertan.” “highest topic” of importance, and that - Appetizers 25% Off McLauchlin believes they are at that “critical mass and members will definitely be boisterous - All you can eat breaking point” and if a solution isn’t found soon, things are when voicing their concerns. Rack of Ribs going to get pretty serious. He estimates that around 10 McLauchlin also pointed out that, percent of RMA members are “pretty questionable on their “it’s one thing to complain, but we’re Dine In or Take Out liability and insolvency proceedings” if this situation contin- providing tangible and realistic solu5337-50 Ave., Vegreville, AB ues. tions.” He said they will have the govPhone: 780-632-6411 He said the average amount of taxes owing to each ernment’s ear and he hopes they will municipality is $3.5 million. “Some are as high as $20 mil- get some action on it so they can remedy lion, and a few at $12 million, and I know a few who’ve liter- the situation. ally burned up their reserves and are in a serious cash flow crunch. This is starting to become a crisis, and in fact it
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