Alberta Premier Danielle Smith says $48 million worth of unpaid municipal taxes are now under repayment plans following a new government directive.
She was speaking at the Rural Municipalities of Alberta 2023 Spring Convention on Wednesday morning.
The premier touted her government’s plans to force oil patch companies to make good on their unpaid municipal taxes, saying it’s “unacceptable when delinquent companies aren’t paying their municipal taxes.”
Under a new directive, companies will not be able to transfer or get new licenses unless the regulators are satisfied that the taxes have been paid.
“So we just need to make sure that the rest of that gets collected,” Smith said.
Earlier this month, Rural Municipalities Alberta released figures showing that energy firms owed $268 million in back taxes in 2022, a figure that is up more than six per cent from 2021.
The pace of nonpayment has also increased. There was $53 million left unpaid last year, up $15 million from the previous year. RMA also said its members have written off another $150 million in unpaid taxes as unrecoverable.
Unpaid taxes must not exceed a threshold amount to be determined by the Alberta Energy Regulator and Alberta Municipal Affairs.
Smith also said her government is building on the programs and infrastructure rural Albertan families use every day to keep the next generation of rural Albertans in their hometowns.
“We hope more opportunities and services mean the next generation of rural Albertans will be more inclined to stay where they grew up, and we hope it means more people and dollars from outside will be drawn into your communities,” she continued.
“Everything we’re doing in the legislature is meant to keep that cycle going starting with the budget.”
Budget 2023, which was tabled in the legislature last month, invests more than $2 billion over three years to increase the local government fiscal framework. Smith said that if passed, municipal funding will rise or fall in line with 100% of the change in provincial revenues from three years before whereas the original formula reflected only 50% of the revenue change
“Linking funding to revenues ensures you are true partners in Alberta success,” Smith said.
“And through the fiscal plan, we’re committed to giving top up funding where required so that no municipality will end up with a year over year decrease in the first year that this new fiscal framework takes it back.”
Smith also said she decided to run in a mixed rural urban riding to ensure their voices are “heard at the table.”
“I’m getting every day the same kind of feedback that you’re giving to other MLAs,” she said.
The premier appointed herself the United Conservative Party candidate after winning the leadership in October after the sitting MLA stepped aside to allow Smith to run. She won the byelection on Nov. 9 with 54.5% of the vote, followed by the NDP candidate with 26.7% of the vote.
