Photo from the Rural Municipalities of Alberta web site

By Curtis Galbraith

Municipal Politics

Rural municipalities want action on unpaid taxes

Mar 22, 2019 | 7:01 AM

Rural Municipalities of Alberta says it will soon push for changes regarding energy companies and municipal taxes.

A survey done in January and February this year by the group found that there are more than $81-million dollars worth of taxes across Alberta that companies owe, but have not paid.

RMA delegates passed a resolution calling for legislative changes at its convention held earlier this week in Edmonton.

MD of Greenview Councilor and RMA Director Tom Burton says he understands the impact taxes can have for these companies.

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“But, they have to understand, too, they are utilizing a lot of the resources of the municipality and accessing the resource that they are being compensated for. We, as municipalities, need to be compensated for the impact that’s happening on our landscape, with our roads and bridges.”

He adds residential and farm property can be seized and sold if taxes go unpaid for three years.

“With the oil and gas company, with the machinery and equipment tax side of it, we don’t have that opportunity to do that, unless you take them, I believe , to a small claims court. I don’t know if we really want to go that way yet.”

Burton says in some instances, a court case can end up costing more than the amount of taxes owed.

He adds not getting this money has “a big-time impact” on what services a municipality can provide.

“When you draft your budgets and you sit down and see what they’re going to bring in from taxes and when you don’t have the revenue coming in from the tax side of it that you budgeted for, because of the refusal about paying, then you’ve got to cut corners to balance your budget at the end of the year.”

Burton says there must be ways for companies and municipalities to work together to find a solution that is good for all concerned.