
New Alberta working group to tackle problem of $253M in unpaid oil and gas property taxes
The Alberta government and the Rural Municipalities Association (RMA) are forming a working group to try to solve the issue of unpaid property taxes owed by oil and gas companies and collect what has now amounted to at least $253 million.
The Property Tax Accountability Strategy working group was announced by the province in a news release Monday, saying work may include closing loopholes and establishing stronger partnerships and communication between the energy industry, rural municipalities and government.
"Whether you like it or not, you have to pay your taxes. 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," Municipal Affairs Minister Ric McIver said in the release.
The president of the RMA, Kara Westerlund, says it's a huge problem resulting in rural communities getting shorted millions of dollars in property taxes that's earmarked for key infrastructure projects.
"I'm not talking about swimming pools or the nice-to-haves; I'm talking about wastewater facilities, culverts, bridges, vital road infrastructure to allow us to get products to market," said Westerlund.
And she says these aren't just insolvent or bankrupt companies that aren't paying their taxes. She says $100 million of the $253 million owed is from companies that are still operating.
Westerlund says it's not clear if any industry representatives will participate, but she's hopeful there will be.
"We're not talking all of industry, for the most part ... we're talking about a handful that continue to, I guess, to play outside of the rules and not to be good stewards in their communities," said Westerlund.
In an email to CBC News, the office of the minister of energy and minerals says most oil and gas companies pay their municipal taxes, noting about $1.5 billion was paid by energy companies in 2023.
The email from Brian Jean's office also states: "We are looking at every tool to ensure delinquent companies pay their municipal taxes including increasing the consequences for not paying them."
Westerlund says she already has some ideas to pitch to the group, such as suspending operating licenses or not allowing them to be transferred to another business, until taxes are paid.
Other municipal leaders say they agree there needs to be some drastic solutions put forward.
"I've talked to a lot of energy ministers. I've talked to a lot of different premiers. Everybody acknowledged it's been a problem, but everybody's really hesitant to do too much about it," said Vulcan County Reeve Jason Schneider.
Issue has persisted for more than a decade
For more than a decade, municipalities have been calling on the province to help them collect unpaid taxes.
Amid a surge in industry insolvencies, the RMA has said its members have few ways to hold companies accountable and recoup their losses.
A member survey for the RMA, which represents 69 counties and municipal districts, found that, as of Dec. 31, 2024, at least $253.9 million of municipal property taxes have gone unpaid by oil and gas companies.
Rural municipalities were owed $67.8 million in oil and gas property taxes from the 2024 tax year, alone, according to the survey results, up from $42.9 million for the 2023 tax year.
Schneider said Vulcan County, located southeast of Calgary, is due more than $9 million in unpaid taxes. In response to the shortfall, he said services to residents have been cut by 30 per cent.
He says he's cautiously optimistic this working group will deliver results that will hold the offenders accountable
"Because all these Band-Aid solutions we've tried over the last nine years, they really haven't worked. Maybe they've made the problem a little less, but ultimately we still have companies that are operating in this province without paying surface leases and municipal taxes," said Schneider.
Westerlund says she aims to have some concrete plans in place by the next RMA convention in the fall.
In an emailed statement, the president of the Canadian Association of Petroleum Producers (CAPP) said she welcomes the working group and stands on the principle that all companies should be paying their taxes and fees to municipalities.
"We will continue to work with the province, the Alberta Energy Regulator and municipalities to ensure the measures in place address liability management challenges effectively and maintain Alberta's competitive advantage for investment in energy," said CAPP president Lisa Baiton.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Globe and Mail
16-05-2025
- Globe and Mail
Alberta Premier Danielle Smith set to shuffle her cabinet
Alberta Premier Danielle Smith is set to shuffle her cabinet days after the legislature broke for the summer. New ministers are scheduled to be sworn in by Lt.-Gov. Salma Lakhani on Friday afternoon in Calgary. Smith is not taking questions from reporters following the swearing-in. At an earlier, unrelated announcement, she said the main aim is to fill the vacancy left by former municipal affairs minister Ric McIver, who is taking on the role of Speaker of the assembly. 'As a result, once you move one cabinet minister, you have to start moving a few others,' said Smith. Former Speaker Nathan Cooper left the job earlier this week and is stepping down this summer as the United Conservative Party member for Olds-Didsbury-Three Hills to become the province's new representative in Washington. The shuffle comes in the wake of controversy over a bill that passed debate in the final hours of the spring legislature sitting. The legislation lowers the bar for citizens to initiate a referendum question, including whether Alberta should secede from Canada. The bill, along with last month's federal election, have renewed interest in separatism among some Albertans fed up with another Liberal government in Ottawa. Smith has said she supports Alberta remaining in Canada but she doesn't want to see the province's separatist movement grow into a large, mainstream political party. She's also said the bill is about giving Albertans a say on whatever issue is important to them through direct democracy. The province could see a separation referendum as early as next year, if the requisite 177,000 signatures are collected by petitioners. Justice Minister Mickey Amery offered an amendment to address concerns from First Nations over the bill, declaring no referendum would interfere with treaty rights. That change didn't satisfy some First Nations chiefs in the province, who said separating from Canada threatens their treaty relationship with the Crown.


Edmonton Journal
13-05-2025
- Edmonton Journal
Ric McIver elected as new Alberta Speaker hours after resigning from cabinet
Article content Alberta MLAs have elected veteran politician Ric McIver as the fifteenth Speaker of the province's legislative assembly in a vote that came hours after his resignation from cabinet was announced. McIver won with a majority of votes early Tuesday over New Democrat MLA Heather Sweet, the only other MLA nominated for the role. As is tradition, McIver feigned resistance while being forcibly escorted to the Speaker's chair by Premier Danielle Smith and Opposition house leader Christina Gray as gleeful MLAs clapped and cheered them on.


CBC
13-05-2025
- CBC
Ric McIver voted in as new Alberta legislature Speaker
Calgary legislature member Ric McIver is the new Speaker of the Alberta legislature. McIver resigned as municipal affairs minister early Tuesday and soon after was voted into the Speaker's job by his peers, defeating Opposition NDP candidate Heather Sweet. After the vote result was announced, McIver was ceremoniously dragged to the Speaker's chair by Premier Danielle Smith and Opposition NDP house leader Christina Gray. Some jovial heel dragging on McIver's part meant Gray dropped his elbow and started pushing him from behind while Smith led the way. The dragging is a parliamentary tradition that dates back hundreds of years to when the Speaker's role was viewed as both unappealing and perilous, given that they risked incurring the wrath of the sovereign. In his first speech from the Speaker's chair, McIver said he was grateful for the new post. "I've committed to everybody on both sides to honour the traditions of this place, to be non-partisan and to help us get through the business of the day every day," McIver said. "If we have a little fun, great ... better fun than nastiness." The Speaker's role is to be the non-partisan referee during question period and debate. WATCH | Why Nathan Cooper resigned as Speaker: Why the legislature Speaker is becoming Alberta's U.S. representative 5 days ago Duration 1:52 After mistakenly thanking Sweet by name in his speech, breaking the parliamentary tradition of referring to members only by their titles, McIver urged colleagues to bear with him as he learns the ins and outs of the role. "See? I'm already breaking the rules," he said. "Despite the fact I've watched this show for this important place for almost about 13 years, that doesn't mean I won't mess it up. But with your help, I'll fail along until we get better at it." Since being elected in 2012, McIver served as municipal affairs minister under two premiers, while also doing stints as transportation minister, infrastructure minister and jobs minister. The Speaker's job became vacant last week after Nathan Cooper announced he was stepping down in order to represent Alberta's interests in Washington D.C.