Unpaid Property Taxes by Oil and Gas Companies Continues to Plague Rural Municipalities

Unpaid Property Taxes by Oil and Gas Companies Continues to Plague Rural Municipalities

Michelle Pinon - News Advertiser

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Oil and gas companies in Alberta currently owe approximately $245 million in property taxes to rural municipalities.

Paul McLauchlin, President of the Rural Municipalities Association, (RMA) said, “There’s been a 200 to 300 percent increase in unpaid taxes since 2019. That’s pretty significant. We’re talking a quarter of a million dollars!”

He went on to say, “Fifty-seven percent of companies that are operating on the landscape are not paying their municipal taxes and we’re looking for remedies through a licensing top rate as well as the transfer of assets.

McLauchlin said they don’t have mechanisms under the Municipal Government Act to take action because of a legislative loophole and so they are unable to seize assets or put liens on assets as it relates to unpaid oil and gas taxes.”

The RMA, on behalf of its 69 member municipalities, has brought forward its concerns to the provincial government on several different occasions, but so far, there’s been no action taken by the Province.

RMA President Paul McLauchlin

“We’re looking to partner with the government to find solutions to ensure that we can drive this home, and regrettably we’ve had to go to the press and have the public drive this home because this has been going on three years now. I know the government has other priorities, but this really needs to be a huge priority because it affects every single rural Albertan.”

McLauchlin believes they are at that “critical mass and breaking point” and if a solution isn’t found soon, things are going to get pretty serious. He estimates that around 10 percent of RMA members are “pretty questionable on their liability and insolvency proceedings” if this situation continues.

Read the full story in the March 3, 2021 edition of the News Advertiser - now online!