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.
The RMA 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. RMA is pleased to announce that the Government of Alberta will partner with RMA to co-lead the initiative, with Minister of Energy and Minerals Brian Jean also committing to participate.
Because of the importance of the issue to rural municipalities and RMA’s familiarity with the drivers of non-payment and shortcomings of previous attempted solutions, RMA looks forward to working with the Government of Alberta as an equal partner in developing the PTAS working group process and leading participants from solution development to implementation and monitoring. Understanding the issues and possible solutions through a rural municipal lens is crucial, and RMA’s leading role in the PTAS will ensure this is the case.
The goal of the PTAS is to produce a joint report by the end of 2025 with actionable recommendations and strategies to recover unpaid taxes, prevent closure of legislative and regulatory loopholes allowing non-payment, and restore a strong partnership between industry, rural municipalities, and government.
Original Release: Unpaid Oil & Gas Taxes: Worsening Crisis Calls for a Collaborative Solution