Alberta’s government and the Rural Municipalities of Alberta (RMA) are forming a working group to recover $253.9 million in unpaid property taxes owed by oil and gas companies — a growing financial burden that has left rural municipalities struggling to balance their budgets.
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Announced in a March 24 government news release, the working group will develop a Property Tax Accountability Strategy (PTAS) to explore solutions, including closing legal loopholes and improving communication between municipalities, the government, and the energy industry.
"Whether you like it or not, you have to pay your taxes," said Ric McIver, minister of municipal affairs, in the release. "We’re committed to working with our municipal partners to ensure that bad actors in the oil and gas industry are held to account, and that municipalities are paid the property taxes they are due."
RMA highlighted the scope of the issue in a separate March 24 release, reporting that as of Dec. 31, 2024, oil and gas companies owed Alberta’s municipalities more than $253.9 million in unpaid taxes. Despite repeated government attempts to address the issue, many of these efforts have fallen short, leaving rural municipalities facing growing revenue gaps.
"Unpaid oil and gas property taxes have persisted for years and have massive impacts on rural municipalities across Alberta," said Kara Westerlund, RMA president, in the release. "We’ve seen repeated well-intentioned government attempts be unsuccessful in finding solutions. As the problem is continuing to grow, we are at a point where sitting down at the same table and working with one another is the only way to come up with solutions that actually work to hold industry accountable for paying their property taxes."
RMA’s push for a collaborative approach gained traction during its 2025 Spring Convention, where Westerlund and McIver announced that Alberta Municipal Affairs and Alberta Energy and Minerals would join RMA in co-leading the PTAS initiative. Minister of Energy and Minerals Brian Jean also committed to participating in the effort.
"Solving big problems requires strong collaboration," Westerlund said. "The willingness of ministers McIver and Jean to work with RMA as a partner, rather than a stakeholder, to understand and solve unpaid property taxes from oil and gas companies is crucial to develop meaningful solutions to hold companies accountable."
The working group is tasked with delivering a joint report by the end of 2025 with actionable recommendations to recover unpaid taxes, close legislative and regulatory loopholes, and restore a stronger partnership between industry, municipalities and the provincial government.
Most oil and gas companies paid their taxes in 2023, contributing about $1.5 billion to municipal revenues. However, a subset of companies failed to meet their obligations, leaving municipalities with a $253.9-million shortfall.
RMA emphasized that rural municipalities — with their direct experience of the impacts of unpaid taxes — must play a leading role in shaping the PTAS. Westerlund said RMA is ready to work as an equal partner with the province to ensure that the strategy is informed by the realities on the ground.
"We know unpaid taxes have huge impacts, and we also know that enhanced industry accountability is required," Westerlund said. "The Property Tax Accountability Strategy will build clear, actionable recommendations as to how to build this accountability into legislation, regulations, and policies."
The PTAS initiative runs parallel to Alberta’s ongoing mature asset strategy, which focuses on addressing challenges related to aging oil and gas infrastructure while encouraging economic development in regions with mature energy assets.
Alberta’s government has been consulting with industry groups and rural municipalities on the strategy, with more details expected in the coming weeks.
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