As rural municipalities struggle with increasing unpaid oil and gas property taxes, RMA proposes a collaborative approach to Alberta Municipal Affairs and Alberta Energy and Minerals.
Nisku, AB, March 12, 2025 (GLOBE NEWSWIRE) — The Rural Municipalities of Alberta (RMA) has conducted a member survey identifying that as of December 31, 2024, at least $253.9 million of municipal property taxes have gone unpaid by oil and gas companies. This marks the seventh consecutive year of the survey which highlights the continued failure by oil and gas companies to meet their legal tax obligations. Despite government efforts to address the issue, the findings make it clear that these measures have fallen short, leaving rural municipalities to shoulder the growing financial burden.
“While we recognize and appreciate the Government of Alberta’s well-intentioned efforts to address unpaid oil and gas taxes, the problem continues to worsen. 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. Tweaks to the system have not worked. It is time for government to dedicate the time and resources needed to work with RMA and other stakeholders to solve this issue once and for all before it causes even more damage to rural communities.” – Kara Westerlund, President, Rural Municipalities of Alberta.
The RMA has called on the Government of Alberta to establish a working group to create a Property Tax Accountability Strategy (PTAS) to address the issue of unpaid oil and gas taxes. After years of advocating for solutions, the RMA recognizes the complexity of the issue and the need for a collaborative approach that involves municipal, provincial, and industry stakeholders. The PTAS, to be developed through a collaborative working group, aims to close legislative and enforcement gaps and ensure industry accountability.
The goal is to produce a joint report with actionable recommendations and strategies to recover unpaid taxes and restore a strong partnership between industry, rural municipalities, and government. RMA is pleased to note that Municipal Affairs Minister Ric McIver and Energy and Minerals Minister Brian Jean have indicated a willingness to collaborate with RMA to form the 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. 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,” explained President Westerlund. “While the problem is not yet solved, we are encouraged by the willingness of ministers McIver and Jean to work with us to seek holistic solutions to this issue through the development of a Property Tax Accountability Strategy. We recognize that a path towards industry accountability requires buy-in from both levels of government and we are hopeful this approach is the way forward.”
A holistic approach through the PTAS is necessary because recent isolated legislative and regulatory changes have fallen short as the amount of unpaid taxes remains largely unchanged from previous years. These measures included enhancing municipal lien powers, restricting companies with significant arrears from receiving new well licenses, and developing a framework for municipalities to report unpaid taxes for enforcement. However, these initiatives have proven ineffective. As of the 2024 fiscal year, the outstanding tax owed has risen significantly to $67.8 million, up from $42.9 million in 2023.
In this year’s survey, the RMA gathered specific company data from members, which provided unique insights into the issue of unpaid property taxes. The results were alarming: the top ten “worst offending” companies collectively owe $67.3 million in unpaid property taxes to 38 different municipalities, several of whom face unpaid taxes from multiple companies on the “top ten” list. The worst offender alone accounts for more than $27 million in unpaid taxes, spread across 19 municipalities. While ten companies being responsible for $67.3 million in tax arrears is concerning, the issue is not isolated to these ten “worst offenders” – in total, members have identified over 200 companies with unpaid property taxes.
“Unpaid property taxes are a pervasive issue that extends far beyond just a few isolated cases. This problem is widespread, with responsibility falling on companies across the industry and impacting municipalities on a significant scale. 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” shared President Westerlund.
For more information, please see RMA’s 2025 By the Numbers.
About the Rural Municipalities of Alberta
The Rural Municipalities of Alberta (RMA) is a trusted and independent association representing Alberta’s 69 counties and municipal districts. Since 1909, RMA remains committed to empowering rural municipalities with strong, effective local governance. Through dedicated advocacy and a suite of valued business services, including cooperative procurement and group benefits through the Canoe Procurement Group of Canada and comprehensive coverage through RMA Insurance, we strive to strengthen and support rural Alberta. Learn more at rmalberta.com.
For media inquiries, please contact:
Shamelle Pless
General Manager, Marketing & Communications, RMA
780.886.2480
shamelle@rmalberta.com
CONTACT: Shamelle Pless Rural Municipalities of Alberta 7808862480 shamelle@rmalberta.com
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