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
Poilievre will do 'anything to win,' must condemn Alex Jones endorsement: Trudeau
Prime Minister Justin Trudeau is ramping up his attacks on Conservative Leader Pierre Poilievre as he promotes his government's federal budget.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
New evidence challenges the Pentagon's account of a horrific attack as the U.S. withdrew from Afghanistan: CNN exclusive
New video evidence uncovered by CNN significantly undermines two Pentagon investigations into an ISIS-K suicide attack outside Kabul airport, during the American withdrawal from Afghanistan in 2021.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
All Alberta wildfires to date in 2024 believed to be human-caused: province
There are 63 wildfires burning in Alberta's forest protection area as of Wednesday morning and seven mutual aid fires, including one in the Municipal District of Peace.
Video shows suspects waving weapons, smashing glass in Toronto jewelry store robbery
Arrests have been made after five men were captured on video rampaging through a jewelry store in Toronto, waving weapons and smashing glass display cases.
Pilot proposes to flight attendant girlfriend in front of passengers
A Polish pilot proposed to his flight attendant girlfriend during a flight from Warsaw to Krakow, and she said yes.
Ottawa injects another $36M into fund for those seriously injured or killed by vaccines
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Ex-SNC executive sentenced to prison term in bridge bribery case
The RCMP says a former SNC-Lavalin executive has been sentenced to three and a half years in prison in connection with a bribery scheme for a bridge repair contract in Montreal.