Alberta’s government is working with the Rural Municipalities of Alberta (RMA) to tackle the ongoing issue of unpaid oil and gas property taxes, which has strained municipal finances across the province.
A newly formed working group, consisting of municipal and provincial partners, will examine the problem in depth and explore potential solutions to ensure municipalities receive the taxes they are owed.
The group aims to develop a property tax accountability strategy, which could include closing loopholes and strengthening communication between the energy sector, rural municipalities, and the provincial government.
“Whether you like it or not, you have to pay your taxes,” said Municipal Affairs Minister Ric McIver.
“We’re committed to working with our municipal partners to ensure that bad actors in the oil and gas industry are held to account, and that municipalities are paid the property taxes they are due.”
While most oil and gas companies meet their tax obligations — paying approximately $1.5 billion in municipal taxes in 2023 — some have failed to do so, leaving municipalities with financial shortfalls.
Energy and Minerals Minister Brian Jean emphasized the government’s commitment to accountability, stating, “We are committed to working with municipalities and all of our partners to hold private companies accountable and ensure they pay the taxes they owe.”
The RMA welcomed the collaboration, with president Kara Westerlund noting the long-standing financial strain unpaid taxes have placed on rural communities.
“Together, we can create solutions that address this issue and restore a partnership between municipalities, government and industry,” she said.
The working group will complement the province’s ongoing efforts to develop a mature asset strategy, aimed at supporting economic growth and addressing the evolving nature of Alberta’s energy industry. More details on that strategy are expected in the coming weeks.