As one of the key economic drivers of the provincial economy, the oil and gas industry is an important stakeholder in this region.
As such, its long-term viability is in the best interest of everyone, including area taxpayers and municipal governments.
Unfortunately, some industry companies owe many millions of dollars in unpaid taxes to municipalities. Work to address the situation has been ongoing for years, with some degree of success with some individual operators.
In an effort to make further progress, Brian Jean, minister of Alberta Energy and Minerals, has announced expanded tools to promote payment of municipal taxes by the oil and gas sector.
“Responsible operators in Alberta much comply with all applicable provincial requirements in order to produce and develop energy resources, including timely payment of municipal taxes associated with oil and gas infrastructure," Jean said last week.
Rural Municipalities of Alberta (RMA), which represents dozens of municipalities, including Mountain View and Red Deer counties, says it is happy with the latest provincial initiative.
“The RMA is pleased to see action being taken to address a priority for its members,” the association said last week. “The letter includes an opportunity for the RMA to be involved in shaping the policy specifics.
“While the announcement is viewed as a positive step forward, the RMA is seeking clarity in several areas related to the tax arrears threshold and grace periods required to trigger enforcement, details on the nature of enforcement action that will be taken, reporting expectations on municipalities, and other areas.”
Taxes paid by oil and gas companies are used to fund many municipal programs, including the upkeep of vital infrastructure such as roads and bridges.
As one of the main users of those same roads and bridges, the oil and gas sector is one of the groups that benefits from the investment.
Other industries, including agriculture and tourism, also need well-maintained and modern infrastructure.
As such, it is encouraging to hear progress is being made on this important issue.
Dan Singleton is an editor with the Albertan.
