Province to help Alberta municipalities collect unpaid taxes from oil and gas properties
The Alberta government is introducing legislative amendments that it says will help municipalities collect unpaid taxes from oil and gas properties.
Municipal Affairs Minister Ric McIver announced changes to the Municipal Government Act Thursday afternoon.
The largest change is to restore and clarify a special lien for unpaid property taxes on property, machinery and equipment.
“This legislation is intended to help municipalities go after those companies who refuse to play by the rules,” said McIver.
“Bad actors who ignore the rules and don’t pay their taxes force everyone else to fill in the gaps – that’s not fair.”
McIver says the amendments will result in several changes that will take effect when they are proclaimed:
- Hold the property owner, and the operator of oil and gas machinery liable for unpaid taxes
- Create a 120-day redemption period between when taxes are due and when the special lien is enforced
- Special liens will apply to all debtor’s property within the municipality.
McIver says this restores a tool that communities lost two years ago after a court ruled that such liens didn't apply to the oilpatch.
The province is advising any company with an outstanding tax bill to contact their local municipality to discuss the changes.
McIver said the province is willing to go further if the special lien doesn’t prove effective.
“We’re hoping that doesn’t happen,” he said. “If it does, I will certainly have conversations with municipalities and energy companies.”
$425 MILLION UNPAID
Last February, a survey by the Rural Municipalities of Alberta showed the oil and gas industry owes a total of $425 million in unpaid taxes to 69 municipalities, most in rural Alberta.
The group called for the province to close loopholes that made it difficult for communities to collect taxes from energy companies, noting they have little recourse if companies skip out on their bill.
It called the new amendments “an important step” towards keeping companies accountable about their tax bills.
“RMA appreciates the Government of Alberta recognizing the importance of this issue and looks forward to working with provincial decision makers to ensure that the changes announced today make a meaningful difference for municipalities,” said RMA president Paul McLauchlin.
Municipalities rely on property taxes as a primary source of income and are legally required to balance their budgets, meaning lost tax revenue cuts into services they provide.
The province says between 40 and 60 per cent of unpaid taxes are the responsibility of companies that continue to operate in Alberta, with the remainder belonging to companies facing insolvency.
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.