News release - Alberta’s urban municipalities urge changes to MGA to secure unpaid taxes from oil and gas properties

Alberta’s urban municipalities urge changes to MGA to secure unpaid taxes from oil and gas properties  

Alberta urban mayors and senior administrators gathered yesterday with industry, community and government partners at the AUMA President's Summit on Municipal Finances: Transparent and Effective to discuss solutions for continuing to provide critical infrastructure and services in the current period of fiscal restraint.  

After discussions about how to prioritize economic development and investment while finding efficiencies, AUMA members signalled solidarity with AUMA’s rural counterpart, Rural Municipalities of Alberta (RMA), who recently shared that approximately $173 million in property taxes on oil and gas properties are currently unpaid to rural municipalities.  

“Municipalities – both urban and rural – are already the most transparent, efficient, effective order of government. We cannot run deficits, which is why unpaid taxes by corporations are particularly unfair and result in increased costs directly borne by taxpayers,” stated AUMA President Barry Morishita. “Since municipalities currently have no legislative tool to collect these owed taxes, we urge the provincial government to update the Municipal Government Act so that municipal property taxes can be collected from oil and gas properties in the event of bankruptcy or receivership.” 

He added, “We speak together as a united voice to say to the Alberta Energy Regulator (AER) that unpaid property taxes must also be considered as grounds for AER to deny a licence to operate in Alberta. Having municipalities shouldering these economic burdens from oil and gas companies impairs our economy. We must all support each other so we can share in brighter times ahead and build strong communities, and a stronger Alberta.”  

The President’s Summit, which ran January 22-23 in Edmonton, was an opportunity to: 

• learn about the financial pressures and processes municipalities must work through; 
• hear from industry and community groups that are impacted by provincial and municipal government spending decisions; and
• document local success stories and strategies municipalities are using to encourage economic development. 

Media contact:
Carla Putnam Kerr
Communications Manager, AUMA
780-668-2436