Alberta, with $102 million owed—an increase of $24.5 million

Totals are at their peak in northeast Alberta, with $102 million owed—an increase of $24.5 million from the previous year.

Northwest Alberta follows, owing $63 million, with $23.1 million added last year. Alberta's counties and municipalities report that the issue of unpaid taxes on oil and gas wells is escalating, even though the industry remains comparatively stable. According to the Rural Municipalities of Alberta (RMA), unpaid property tax bills from oil producers reached $67.8 million in the 2024 tax year, up from $42.9 million in 2023. This raises the total amount owed to RMA member local governments to $253.9 million since the issue gained attention in 2019.

"While we acknowledge the Government of Alberta's sincere efforts to tackle unpaid oil and gas taxes, the situation continues to deteriorate," said RMA president Kara Westerlund in a press release. "Modifications to the existing system have proven ineffective. It's crucial for the government to invest the necessary time and resources to collaborate with the RMA and other stakeholders to resolve this issue once and for all before it inflicts further damage on rural communities." Rural officials and administrators have expressed concerns that the traditional penalties used to collect unpaid taxes, such as property auctions or seizures, are ineffective in the oilfield context due to environmental liabilities associated with those sites.

The province began examining this problem in the early 2020s, offered typical tax incentives to encourage new drilling during the pandemic, and is currently reevaluating assessment methods. "Unpaid property taxes are a widespread issue that goes well beyond a few isolated incidents," Westerlund stated. "This is a pervasive problem affecting companies throughout the industry, significantly impacting municipalities. It indicates a systemic issue with industry regulation and accountability that urgently requires attention and collaborative efforts to address." The RMA's collected data indicates that 10 unnamed companies owe a total of $67 million, with one company alone responsible for $27 million in unpaid taxes. In total, 200 companies are behind on their payments to varying degrees. No detailed breakdown by county is provided, but RMA's Zone 1, which includes rural areas south of Calgary, seems to be less affected, with those counties owed a total of $19.9 million, including $2.7 million from 2024.

Northeast Alberta leads in unpaid taxes at $102 million, with $24.5 million added last year, followed by northwest Alberta with $63 million and $23.1 million added in the same period. --
Edited by Olatunbosun Ibrahim
Southern Alberta Newspapers, March 27, 2025