Northern Sunrise County says over $4.7 million worth of oil and gas property taxes have been left unpaid. NSC is supporting and speaking up with the Rural Municipalities of Alberta in the implications and concerns of unpaid taxes.
A survey done by the RMA indicated rural municipalities face an overall unpaid oil and gas property tax burden of $245.7 million, with still-operating oil and gas companies responsible for 57% of these unpaid taxes.
NSC has a long history of working with companies operating in the area to grow the rural economy and appreciates and values the oil and gas industry and the investments they have made in the County. On another note, NSC recognizes many of their ratepayers are experiencing financial difficulties from the economic downturn and effects of the COVID-19 pandemic.
“We do not support shifting the unpaid oil and gas taxes to Northern Sunrise County property owners because some oil and gas companies are choosing not to fulfill their property tax commitments.”
Reeve for Northern Sunrise County, Carolyn Kolebaba says there’s a loophole in the system allowing oil and gas companies to not pay their property taxes. “There’s no hammer to make them pay it, we can’t and don’t want to take their properties into our portfolio.” A lot of environmental legislation oil and gas companies have to follow is one of the many reason the county can’t over take the land or properties Kolebaba says.
Kolebaba says they have been lobbying with the RMA to the province to figure out a process so municipalities can collect unpaid taxes. “We’ve asked; for companies wanting new or renewed licensing to be asked if they have paid all their municipal taxes, and if they haven’t then we don’t want them to get it.”
Kolebaba says worse case scenario if oil and gas companies keep disregarding property tax payments, it will fall onto residents. “We are doing everything in our power to make sure that doesn’t occur, we have healthy reserves for times like this.” Kolebaba says they are currently using some of their reserves to offset the effect and keep services levels the same.
NSC manages 108 kilometres of paved roads, 1,050 kilometres of gravel roads, and 97 bridges and may have no choice but to recover every dollar not paid in property taxes by the oil and gas industry from other property taxpayers in the form of substantially increased tax rates or reduced service levels.
-Erika Rolling, Trending 55 Newsroom
