Rocky View County has written off nearly $136,000 in unpaid property taxes from five oil and gas companies, citing the amounts as uncollectable.
Council approved the cancellation earlier this week, allowing the county to apply for a $23,072 Provincial Education Requisition Credit (PERC) to recover a portion of unpaid education taxes.
The five companies—Concerto Resources Ltd., Mika Resources Ltd., Lexin Resources Ltd., LR Processing Ltd., and Richbar Energy Ltd.—are in receivership and no longer operating, making further collection impossible.
"These balances are now considered uncollectible," Adrienne Wilson, the county’s supervisor of taxation and receivables, told council.
She said the properties are classified as linear—such as pipelines or oil wells—and do not have land titles, meaning the county cannot place liens against them.
Deputy Reeve Don Kochan asked if the county had any enforcement options. "Could we not put a lien on their title?" he asked.
Wilson explained there was no title to lien and that while the province has introduced special lien enforcement, the listed companies are already defunct.
Councillor Kevin Hanson asked whether this was the first time the county had written off unpaid oil and gas taxes. Wilson said a similar report was brought forward in 2019.
The vote to approve the tax cancellation was unanimous. Councillor Samra, who moved the motion, noted that while the county could not recover the full amount, at least PERC would offset some of the loss.
"At least we get 15 per cent back," he said.
Unpaid Taxes an Ongoing Issue Across Alberta
The issue extends beyond Rocky View County. A February 2024 survey by the Rural Municipalities of Alberta (RMA) found that as of December 2023, at least $251.8 million in municipal property taxes had gone unpaid by oil and gas companies.
"Year after year, rural municipalities provide clear, documented evidence that a select group of property owners are simply choosing not to pay their property taxes," RMA president Paul McLauchlin said in a previously written statement. "While all other property owners in the province face strict penalties for non-payment, oil and gas companies continue to exploit legislative and policy loopholes."
Alberta has made some legislative changes to address the issue, including granting municipalities special lien status and restricting companies with outstanding arrears from transferring or acquiring new licences.
However, McLauchlin said those measures failed to target "zombie" companies that remain operational but refuse to pay taxes.
"These are the companies that are a risk to rural municipalities and all Albertans but are allowed to continue to pull Albertans’ resources from the ground and funnel profits out of the province," he said.
The RMA had called on the Alberta government to direct the Alberta Energy Regulator (AER) to phase in stronger enforcement measures, including preventing companies from operating if they have unpaid tax arrears.
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