Rocky View County (RVC) is confirming that oil and gas companies owe the municipality about $260,000 in unpaid taxes.
"Rocky View County is addressing approximately $260,000 in back taxes from Alberta oil companies, a fraction of the reported $250 million affecting various municipalities," the County said in response to an information request from Rocky View Weekly. "This is an ongoing situation, yet it remains a manageable concern for us currently.
Last week it was reported oil and gas companies operating in rural Alberta communities now owe more than $252 million in unpaid municipal property taxes, according to a survey conducted by the Rural Municipalities of Alberta (RMA).
In the 2023 property tax year, about $43 million in unpaid taxes was added to the amount oil and gas companies already owe to rural municipalities.
To address the problem of unpaid millions in municipal property taxes oil and gas companies owe to municipalities, the Alberta government has brought in two major changes in recent years. Municipalities now have a secured status, allowing them to use a special lien to recover unpaid taxes. The Alberta Energy Regulator (AER) was also ordered to not approve license transfers or new licenses to companies owing more than $20,000 in property taxes.
The RMA said these policy changes are a step in the right direction, but noted that only 10 per cent of surveyed members said they had been able to use the special lien status to recover outstanding debts.
Dozens of companies are operating with few assets, and high liabilities, according to the RMA, creating a situation where the Orphan Well Association would likely be overwhelmed if companies were obligated to immediately pay outstanding property taxes.
The RMA is calling on the Government of Alberta to prevent companies from operating if they have unpaid property taxes, and proposing that enforcement be phased in over the coming months based on ability of a company to pay and other factors.
"A phased enforcement approach is a reasonable strategy that will give companies more time to get their financial house in order, with defined timelines and consequences for inaction. Allowing this problem to continue unchecked while offering Band-Aid solutions is simply unfair to Albertans, and will allow a few bad actors to continue to damage the reputation of Alberta’s oil and gas industry,” said RMA president Paul McLauchlin.
-With files from Brett McKay, Local Journalism Initiative Reporter/ Great West Media
