The report is the result of the Property Tax Accountability Strategy (PTAS) working group, which comprised Alberta's government, the Rural Municipalities of Alberta (RMA), and rural municipal administrators, with support from representatives of the Alberta Energy Regulator (AER) and the oil and gas industry as observers. The report makes 17 recommendations aimed at recovering unpaid taxes from companies that are still operating and reducing future unpaid taxes.

The recommendations include integrating property taxes into the AER's mandate and enabling the regulator to act faster and with stronger tools when companies fail to meet their tax obligations. They also call for improved data access for municipalities and increased data collection to better monitor the issue.

"Unpaid taxes put an unfair burden on Alberta taxpayers, who end up footing the bill or seeing their services reduced. Our government is focused on working with our municipal and industry partners to improve the way we address unpaid taxes to benefit them and taxpayers alike. This is a great example of government listening to industry and stakeholders and charting a path forward together."

Dan Williams, Minister of Municipal Affairs

"We are committed to making changes so that every municipality can count on the energy property taxes they are due. We thank the RMA for working on a process that will lead to more transparency to achieve this goal."

Brian Jean, Minister of Energy and Minerals

Alberta's government is already taking action on several of the issues and opportunities identified in the report. Beginning this year, assets belonging to insolvent companies will be removed from the assessment roll faster, helping reduce the accumulation of uncollectible taxes. The province will also extend the Provincial Education Requisition Credit for three more years, ensuring municipalities are not responsible for uncollectible property taxes from oil and gas assets.

"The Property Tax Accountability Strategy report is the result of nearly a year of hard work and collaboration among RMA, the Government of Alberta, the AER, the oil and gas industry and rural municipal representatives. When implemented, the recommendations will provide the AER clear authority to take enforcement action when companies have unpaid property taxes, will improve unpaid tax data and use, and will lead to long-term collaboration between municipalities, government, and the AER. The PTAS process shows that collaboration between government and rural municipalities can lead to positive outcomes and drive meaningful solutions to rural challenges."

Kara Westerlund, president, Rural Municipalities of Alberta

"We appreciate the leadership being demonstrated by the Alberta government to address and work toward a resolution of municipal tax issues. EPAC agrees that oil and gas companies must meet their taxation obligations and that rural municipalities need a taxation system that is reasonable for local businesses and job creators. We look forward to the final report and to working with the province and rural municipalities on the next steps."

Tristan Goodman, president and CEO, The Explorers and Producers Association of Canada

"CAPP stands on the principle that all companies should be paying their taxes and fees to municipalities. Municipal taxes paid by oil and natural gas producers support the high quality of life in rural communities where people in the industry work and live. We will work with the province, the Alberta Energy Regulator and municipalities to find solutions that strengthen the system while helping ensure Alberta is an attractive place to invest in responsible energy development."

Lisa Baiton, CAPP president and CEO

While most oil and gas property taxes are paid in full every year, unpaid taxes remain a real and persistent problem that the province is committed to addressing. Alberta's government will be reviewing the report's recommendations and evaluating the next steps over the coming months.