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
DEVELOPING Person on fire outside Trump's hush money trial rushed away on a stretcher
A person who was on fire in a park outside the New York courthouse where Donald Trump’s hush money trial is taking place has been rushed away on a stretcher.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Vicious attack on a dog ends with charges for northern Ont. suspect
Police in Sault Ste. Marie charged a 22-year-old man with animal cruelty following an attack on a dog Thursday morning.
Senators reject field trip to African Lion Safari amid elephant bill study
The Senate legal affairs committee has rejected a motion calling for members to take a $50,000 field trip to the African Lion Safari in southern Ontario to see the zoo's elephant exhibit.
Tropical fish stolen from Beachburg, Ont. restaurant found and returned
Ontario Provincial Police have landed a suspect following a fishy theft in Beachburg, Ont.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.