Deadbeat oil operators owe rural municipalities $250 million in back taxes

Small towns and counties in Alberta are out more than $250 million in tax arrears and now the Rural Municipalities Association (RMA) wants the oil companies responsible to buck up.As of March 1, RMA members were owed $252 million, including $43 million in the last tax year alone — although that number is down from $50 million in 2022.In a statement posted to its website, RMA president Paul McLauchlin said it is a sign of an ongoing lack or industry regulation and accountability even as the companies enrich themselves and their shareholders."Quite clearly this is an active, ongoing issue that continues to make it more difficult for rural municipalities to provide the infrastructure and services that oil and gas companies, as well as other industries and rural residents, rely on," McLauchlin said..“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.” RMA President Paul McLauchlin.“This issue is not settled; companies continue to profit from Alberta’s resources while ignoring their community obligations and funnelling profits to executives and shareholders.”In recent years, the Alberta government has attempted to address the issue with two major changes. Municipalities now have a secured status, allowing them to use a special lien to recover unpaid taxes and the Alberta Energy Regulator (AER) was also ordered to not grant license transfers or new licenses to companies owing more than $20,000 in back taxes.“Year after year, rural municipalities provide clear, documented and verifiable evidence that a select group of property owners are simply choosing not to pay their property taxes and, year after year, the problem drags on due to a lack of industry regulation and accountability,” he said, blaming in part a lack of oversight from the AER..While he agreed forcing companies into bankruptcy would increase financial burdens on the Alberta government and specifically, the Orphan Well Association, he called on the AER to be more forceful in tax collection efforts and closing loopholes. He wants to see a ‘phased approach to enhanced enforcement.’“While all other property owners in the province face strict penalties for non-payment of property taxes, oil and gas companies continue to exploit legislative and policy loopholes and hide behind an industry regulator that has, for many years, refused to hold some companies accountable for poor business decisions, high liability risks and a lack of concern for the public interest,” he said.“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.” .This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.