In Alberta, if a homeowner fails to pay property taxes for two years, a tax recovery notification is added to their property title and the cost of doing so is added to their tax bill.
If taxes continue to go unpaid, the property is sold at auction.
That’s the law.
But it seems the same rules don’t apply to the tax-cheating oil companies that have collectively stiffed 69 rural municipalities to the tune of $250 million in overdue property taxes.
That’s money badly needed to fund things like libraries and rec centres, plug potholes, and repair pipes and street lights.
Yet many of these delinquent oil companies continue to make money while not paying their property tax bills. What’s worse, the province keeps letting them get away with it.
That’s why municipal leaders are asking the Government of Alberta to give bad actors a choice – pay up or pack up.
Pay Up or Pack Up
At the Rural Municipalities of Alberta (RMA) convention on Nov. 5, members passed a motion asking the province to require municipal tax payment as a condition of a license to develop oil and gas resources.
And if companies still don’t pay the required municipal taxes, the motion asks the government to pay back taxes from the royalties it collects.
“The bad actors should not be allowed to operate or develop without paying their taxes,” Tamara Miyanaga, reeve of the Municipal District of Taber, told the Cochrane Eagle. “Oil companies cannot operate in Alberta without paying their royalties. The same must be true of municipal taxes.”
In a Q&A with municipal leaders, Premier Danielle Smith stalled. She said the province needs the names of specific companies, impacted municipalities, and the amount of tax owed.
We Already Know Who They Are
RMA president and reeve of Ponoka County, Paul McLauchlin, called the Premier’s bluff.
“That information has been shared. AER (Alberta Energy Regulator) has the information. They know exactly who it is, they know exactly what is owed, and they’re continuing to be allowed to operate,” McLauchlin said.
However, the provincial government still seems more interested in collecting information it already has instead of taking action. In September, Energy Minister Brian Jean sent letters to municipalities asking them to list the tax-evading oil companies and nominate them for enhanced enforcement from the AER.
In an interview with CBC, McLauchlin said the list comes with conditions. Municipalities must wait a year if a company misses the tax payment deadline, and the amount owing must meet a threshold.
“Not Worth The Paper It’s Written On”
“I’ll be honest with you, I’m not even sure it’s worth the paper it’s written on,” McLauchlin told CBC about the energy minister’s letter.
He also said the provincial government is dreaming if it thinks the AER will do its dirty work and step into the role of property tax payment enforcer.
He’s right. In an emailed statement to the CBC, Lauren Stewart, spokesperson for the energy regulator, confirmed that collecting property taxes is the sole responsibility of the municipalities.
According to McLauchlin, all of this dithering and dodging has left municipal leaders “tremendously frustrated,” considering how long they’ve been fighting the unpaid tax issue.
It also sends the wrong message: Come to Alberta and drill for oil and gas. If you pay your property taxes, great. If not, don’t worry; just carry on with business as usual.
