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EDMONTON — Alberta’s government says a new report is outlining ways to address unpaid oil and gas property taxes owed to rural municipalities.
The report from the Property Tax Accountability Strategy working group includes 17 recommendations aimed at recovering unpaid taxes from operating companies and preventing future shortfalls.
The working group included representatives from the provincial government, the Rural Municipalities of Alberta and rural municipal administrators, with the Alberta Energy Regulator and oil and gas industry representatives participating as observers.
Among the recommendations are proposals to integrate property tax compliance into the Alberta Energy Regulator’s mandate and give the regulator stronger enforcement tools when companies fail to pay municipal taxes.
The report also calls for improved data sharing and expanded data collection so municipalities can better monitor unpaid taxes tied to energy assets.
Municipal Affairs Minister Dan Williams says unpaid taxes place a burden on taxpayers when municipalities must either absorb the losses or reduce services.
Energy and Minerals Minister Brian Jean says the province is working toward changes so municipalities can rely on energy property taxes they are owed.
The province says it has already begun acting on some of the report’s findings. Beginning this year, assets belonging to insolvent companies will be removed more quickly from municipal assessment rolls to reduce the buildup of uncollectible taxes.
The government also plans to extend the Provincial Education Requisition Credit for three more years, shielding municipalities from having to cover uncollected property taxes tied to oil and gas assets.
Kara Westerlund, president of the Rural Municipalities of Alberta, says the recommendations are intended to give the energy regulator clearer authority to enforce unpaid tax obligations and improve transparency around the issue.
Industry groups say companies should meet their municipal tax obligations while maintaining a system that supports continued investment in Alberta’s energy sector.
The province says it will review the recommendations and consider next steps in the coming months.
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