County owed small, but significant portion of unpaid taxes from energy sector

That doesn’t excuse the fact that the County is still owed that money.

“We are supportive of our oil and gas industry, but like any business, there are ebbs and flows. We’re certainly looking at creative ways, or constructive ways, that we can help,” said Beaupre. “But, not paying your taxes I don’t believe is one of them.”

When asked about this seemingly ballooning issue during a press conference on Tuesday, Premier Jason Kenney re-iterated the struggles the oil and gas sector has faced, saying “you can’t wring money from a stone”, pointing to the number of companies that have ceased operations in the past year that aren’t able to pay their taxes.

Beaupre says that statement isn’t totally off base.

“It is a correct statement. If they are no longer operational, you can’t bleed money from a stone,” said Beaupre. “But, in the same breath, the money that is collected by the municipalities is directly re-invested back into the areas where those industries are operating. Whether it’s into road infrastructure, or bridges, or things that support their type of industry.”

The issue isn’t just with bankrupt and defunct companies, as much of the unpaid property tax province-wide is from companies that are still in operation. Actions like that have led former Alberta Liberal MLA David Swann to take a tax strike until the province makes changes to legislation to force companies which are in arrears to pay up.

Some have gone as far as to call this a “tax revolt” by the energy sector. Beaupre says she sees this falling somewhere in between that, and a struggling industry.

“We’ve been told by some industry members that their largest expense is their property taxes. Especially if they’re a large operation,” said Beaupre. “Part of that is the cost of doing business, and it is worked into their business plans, no different than ours.”

“But there are those that continue to operate without paying their bills. Like anybody else, they’re expected to pay their taxes.”

How rural municipalities will address this issue remains to be seen. Beaupre notes of the RMA’s next meeting in the spring, as well as the meeting of northern Mayors and Reeves next month, which will certainly feature this as a top issue to discuss.

One way to address this, as mentioned by RMA Associate President Al Kemmere, is for the province to change legislation, allowing municipalities the chance to force companies to pay their debts. As it is right now, the province has control over such matters.

“If Alberta’s property tax system is not amended to prevent oil and gas companies from refusing to pay property taxes, many rural municipalities will struggle to remain viable,” said Kemmere, in a release.

Beaupre adds that having a collaborative approach with the oil and gas sector will be key helping the industry thrive, the County stay viable and getting the province back to a point of prosperity.

“That’s operative word: we have to work together. I think the solutions come from working together.”

by Shaun Penner

County owed small, but significant portion of unpaid taxes from energy sector

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