Unpaid taxes owed from oil and gas companies to rural municipalities continue to increase
The Rural Municipalities of Alberta (RMA) has conducted a member survey that identifies that approximately $173 million in property taxes are currently owed to rural municipalities from oil and gas companies have gone unpaid.
This is a 114% increase from the $81 million that was identified through a similar survey in March 2019. The current survey was completed by a significant number of RMA’s 69 member municipalities. The $173 million estimate above was determined by extrapolating the survey results to apply to all RMA members using equalized assessment.
Non-payment of taxes by oil and gas companies on property that they own and operate has been an ongoing issue for rural municipalities. The massive increase in unpaid taxes since the last survey less than a year ago indicates that the problem is worsening.
liquor stores. SUBMITTED PHOTO
Many oil and gas companies are unable or unwilling to pay municipal property taxes due to the ongoing downturn in the price of oil and Alberta’s challenges in market access and receiving a fair price for its resources. . . . contd.
