OTTAWA: Outstanding property taxes owed to rural municipalities in Alberta by energy companies have reached the highest level ever, according to the Alberta Association of Municipal Districts and Counties.
After the 69 municipal districts and counties reported at the end of September, the outstanding amount had grown to an excess of $18 million, president Al Kemmere told CBC News. “It has been growing over the years, and this is our highest year ever,” Kemmere said.
It’s the latest blow to a struggling rural economy that is feeling the impact of a weak harvest and continued downturn in the Alberta economy.
Kemmere says adding to the problem is a requirement for municipalities to pay the provincial government about $4 million in education tax, regardless of their ability to collect. That will cause municipalities to make some difficult choices, he said.
Al Kemmere, president of AAMDCAl Kemmere, AAMDC president, says strapped rural governments have tough choices ahead. (Twitter)
“They’re going to have to make some future budget decisions based on the fact they just have reduced ability to collect,” said Kemmere, noting that local governments are also nervous about the new carbon levy set to begin in January.
At the AAMDC’s annual fall convention this week in Edmonton, members passed resolutions asking the provincial government to exempt municipalities and agricultural operations from paying the carbon levy on natural gas, gasoline and diesel.
“Whether it’s the oil and gas assessments that are dropping or real estate assessments are dropping, it’s going to have us adjusting our tax rates, no doubt about it, or [adjusting] our service levels,” Kemmere said.
In addition to failing to pay property taxes, some energy companies have stopped paying landowners their annual land lease rent. Alberta landowners are required by law to lease their property in exchange for annual payment.
