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
'Still so much love between us,' Sophie Gregoire Trudeau says of Prime Minister Justin Trudeau
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.
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
Pro-plastic lobbyist presence at UN talks is 'troubling,' say advocates
Environmentalist groups are sounding the alarm about a steep increase in the number of pro-plastic lobbyists at the UN pollution talks taking place this week.
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Trump's lawyers grill ex-tabloid publisher as 1st week of hush money trial testimony nears a close
After prosecutors' lead witness painted a tawdry portrait of “catch-and-kill” tabloid schemes, defence lawyers in Donald Trump's criminal trial on Friday sought to dig into an account of the former publisher of the National Enquirer and his efforts to protect Trump from negative stories during the 2016 election.