Alberta’s government and rural municipalities have released a new report aimed at reducing unpaid oil and gas property taxes and preventing future shortfalls, a persistent issue that has left taxpayers footing the bill or facing reduced services.The report comes from the Property Tax Accountability Strategy (PTAS) working group, which included Alberta’s government, the Rural Municipalities of Alberta (RMA), and rural municipal administrators, with support from the Alberta Energy Regulator (AER) and observers from the oil and gas industry. It contains 17 recommendations to recover unpaid taxes from operating companies and improve long-term monitoring.Key recommendations include integrating property taxes into the AER’s mandate, giving the regulator stronger and faster enforcement powers when companies fail to meet their tax obligations, and improving data access and collection for municipalities.“Unpaid taxes put an unfair burden on Alberta taxpayers,” said Dan Williams, Minister of Municipal Affairs. “Our government is focused on working with our municipal and industry partners to improve the way we address unpaid taxes to benefit them and taxpayers alike.”Brian Jean, Minister of Energy and Minerals, added: “We are committed to making changes so that every municipality can count on the energy property taxes they are due. We thank the RMA for working on a process that will lead to more transparency to achieve this goal.”.The province is already taking action. Assets belonging to insolvent companies will now be removed from the assessment roll faster, helping limit uncollectible taxes, and the Provincial Education Requisition Credit will be extended for three more years to ensure municipalities are not left responsible for unpaid oil and gas property taxes.“The PTAS report is the result of nearly a year of collaboration among RMA, the government, the AER, the oil and gas industry and rural municipal representatives,” said Kara Westerlund, president of the RMA. “When implemented, the recommendations will give the AER clear authority to act on unpaid property taxes and improve data for long-term collaboration between municipalities, government, and the AER.”Tristan Goodman, president and CEO of the Explorers and Producers Association of Canada, said oil and gas companies must meet their taxation obligations. “Rural municipalities need a taxation system that is reasonable for local businesses and job creators,” he said.Lisa Baiton, president and CEO of CAPP, added that municipal taxes from oil and gas producers support the quality of life in rural communities and that the industry will work with government and municipalities to strengthen the system while keeping Alberta attractive for responsible energy development.While most oil and gas property taxes are paid in full, unpaid taxes remain a persistent problem. Alberta’s government says it will review the report’s recommendations and determine next steps over the coming months.
