A ministerial order by the provincial government to tackle unpaid taxes from oil and gas companies has been praised by the Rural Municipalities of Alberta..However, the RMA called for more action over unpaid surface leases which are costing “small family farms or acreages.”.A recent survey found energy companies owed a collective $268 million in 2022 in unpaid property tax, a 6% increase on the previous year..Under the ministerial order, energy companies will need to confirm their unpaid municipal taxes across the province are below a maximum threshold — or that they have a repayment plan in place — before they are issued a new licence or permitted to purchase or sell existing licenses..In a Tuesday statement, Pete Guthrie, minister of Energy, announced: “While most companies pay their taxes regularly and on time, there are a few delinquent companies that owe overdue property taxes. That's why we’re putting in place this ministerial order — to continue building on our recent work. Our goal is to reduce unpaid taxes throughout the province.”.Rebecca Schulz, minister of Municipal Affairs, added: “Our government is serious about addressing the ongoing problem of unpaid municipal taxes. This problem has lingered for far too long, and while some viable companies have started to pay their back taxes, others are still not getting the message.”.“This direction to the Alberta Energy Regulator will have real consequences for those delinquent companies. In Alberta, we pay what we owe, and it’s time to pay up.”.Reacting to the announcement, RMA president Paul McLauchlin said he was “pleased” by the ministerial order, and that “municipalities are strong partners in responsible energy and resource development.”.“Unpaid oil and gas property taxes have been the RMA’s top advocacy issue for several years and resulted in rural municipalities across the province losing a collective $268 million in revenue that would be used to provide infrastructure and services across rural Alberta,” said McLauchlin..“We appreciate this is a complex and politically sensitive issue, and the ministers of Municipal Affairs and Energy deserve credit for taking action to stand up for rural municipalities and all taxpayers in Alberta.”.“This action represents major progress in holding accountable the small number of oil and gas companies that operate without paying taxes.”. Farm .However, the RMA said rural landowners continue to face similar issues with unpaid surface leases where oil and gas wells are located on private property. Although disputes can be settled directed to a land and property rights tribunal, a lack of resources and knowledge of the system can make it difficult for small family farms to challenge corporations..“While this Ministerial Order is a major positive step in holding oil and gas companies accountable for paying municipal property taxes, rural landowners continue to struggle with unpaid surface leases,” said McLauchlin..“In many cases, those affected are small family farms or acreages that use surface lease revenue to supplement their agricultural income, or to support their retirement.”.“Unfortunately, the data on the value of unpaid surface leases is not great; we know this is also a widespread problem, but it's mainly the responsibility of the same small group of bad actors (who) are ignoring their property tax payment obligations.".“We are thankful for the province’s action on unpaid taxes, but we now plan to shift our focus to better understanding and developing solutions to hold the same companies accountable for making surface lease payments.”
A ministerial order by the provincial government to tackle unpaid taxes from oil and gas companies has been praised by the Rural Municipalities of Alberta..However, the RMA called for more action over unpaid surface leases which are costing “small family farms or acreages.”.A recent survey found energy companies owed a collective $268 million in 2022 in unpaid property tax, a 6% increase on the previous year..Under the ministerial order, energy companies will need to confirm their unpaid municipal taxes across the province are below a maximum threshold — or that they have a repayment plan in place — before they are issued a new licence or permitted to purchase or sell existing licenses..In a Tuesday statement, Pete Guthrie, minister of Energy, announced: “While most companies pay their taxes regularly and on time, there are a few delinquent companies that owe overdue property taxes. That's why we’re putting in place this ministerial order — to continue building on our recent work. Our goal is to reduce unpaid taxes throughout the province.”.Rebecca Schulz, minister of Municipal Affairs, added: “Our government is serious about addressing the ongoing problem of unpaid municipal taxes. This problem has lingered for far too long, and while some viable companies have started to pay their back taxes, others are still not getting the message.”.“This direction to the Alberta Energy Regulator will have real consequences for those delinquent companies. In Alberta, we pay what we owe, and it’s time to pay up.”.Reacting to the announcement, RMA president Paul McLauchlin said he was “pleased” by the ministerial order, and that “municipalities are strong partners in responsible energy and resource development.”.“Unpaid oil and gas property taxes have been the RMA’s top advocacy issue for several years and resulted in rural municipalities across the province losing a collective $268 million in revenue that would be used to provide infrastructure and services across rural Alberta,” said McLauchlin..“We appreciate this is a complex and politically sensitive issue, and the ministers of Municipal Affairs and Energy deserve credit for taking action to stand up for rural municipalities and all taxpayers in Alberta.”.“This action represents major progress in holding accountable the small number of oil and gas companies that operate without paying taxes.”. Farm .However, the RMA said rural landowners continue to face similar issues with unpaid surface leases where oil and gas wells are located on private property. Although disputes can be settled directed to a land and property rights tribunal, a lack of resources and knowledge of the system can make it difficult for small family farms to challenge corporations..“While this Ministerial Order is a major positive step in holding oil and gas companies accountable for paying municipal property taxes, rural landowners continue to struggle with unpaid surface leases,” said McLauchlin..“In many cases, those affected are small family farms or acreages that use surface lease revenue to supplement their agricultural income, or to support their retirement.”.“Unfortunately, the data on the value of unpaid surface leases is not great; we know this is also a widespread problem, but it's mainly the responsibility of the same small group of bad actors (who) are ignoring their property tax payment obligations.".“We are thankful for the province’s action on unpaid taxes, but we now plan to shift our focus to better understanding and developing solutions to hold the same companies accountable for making surface lease payments.”
