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By rdnewsNOW Staff

MILLIONS OWED

Rural Municipalities of Alberta call for government action on unpaid oil and gas property taxes

Mar 13, 2025 | 11:11 AM

Rural Municipalities of Alberta (RMA) is calling on the Government of Alberta to establish a working group to create a Property Tax Accountability Strategy (PTAS) to address an ongoing issue of unpaid oil and gas property taxes.

For seven consecutive years, the RMA has conducted a member survey that’s found oil and gas companies to be shirking their legal obligations. In the most recent edition, members reported that as of Dec. 31, 2024, at least $253.9 million in municipal property taxes have gone unpaid by oil and gas companies.

From the RMA’s 2025 Unpaid Oil and Gas Tax Survey. (Rural Municipalities of Alberta/By the Numbers)

While the government has tried to address this issue, the RMA says the most recent survey findings indicate more effective measures are needed as rural municipalities are shouldering a growing financial burden.

“Year after year, rural municipalities present clear, documented, and verifiable evidence that oil and gas companies are willfully avoiding their property tax responsibilities. Yet, year after year, this issue persists due to a lack of proper industry regulation and accountability. While other property owners across the province face stringent penalties for non-payment, oil and gas companies continue to take advantage of legislative and policy gaps,” comments RMA President Kara Westerlund.

She adds, the government needs to dedicate time and resources to solving the issue rather than merely tweaking the system.

The RMA explains this is a complex issue requiring collaboration from municipal, provincial and industry stakeholders. Through a collaborative working group, a PTAS could be developed to close legislative enforcement gaps and ensure industry accountability.

The goal would be for the group to produce a joint report with actionable recommendations and strategies to recover unpaid taxes and restore a strong partnership between the industry and rural municipalities.

The RMA is happy to share that Minister of Municipal Affairs Ric McIver and Brian Jean, Minister of Energy and Minerals, have indicated willingness to collaborate with RMA to form a PTAS in the coming months.

“As we work to address the ongoing issue of unpaid oil and gas taxes, a collaborative approach between government and municipal stakeholders is essential,” says Westerlund. “By coming together with key partners, including the provincial government, industry, and other relevant stakeholders, we can develop practical, effective solutions that not only recover unpaid taxes but also ensure accountability and long-term sustainability for all of Alberta’s municipalities.”

Previous attempts to address the issue have included enhancing municipal lien powers, restricting companies with signficant arrears from receiving new well licenses and developing a framework for municipalities to report unpaid taxes for enforcement.

RMA data suggests these efforts have been ineffective, with taxes owed rising to $67.8 million as of the 2024 fiscal year, up from $42.9 million in 2023.

This year, the RMA survey gathered data from members on specific companies, finding the top ten “worst offending” companies to be collectively owing $67.3 million in unpaid property taxes to 38 municipalities. The top offender, on its own, reportedly accounts for more than $27 million in due taxes across 19 municipalities. Altogether, members identified over 200 companies with unpaid property taxes.

“This problem is widespread, with responsibility falling on companies across the industry and impacting municipalities on a significant scale,” shares Westerlund. “It is crucial that we recognize the scope of this challenge; it is a systemic problem with how the industry is regulated and held accountable that requires immediate attention and collaborative action to resolve.”

You can find a full report of the survey results online; the link is available at the bottom of the release.