Woodlands County out $4.3 million in 2018 property taxes from energy companies

A struggling economy which has hit Alberta’s energy sector hard is having a ripple effect for Woodlands County. The County’s administration reported to Council during the 2019 budget process that unpaid 2018 municipal property taxes from energy companies amounted to $4.3 million dollars. The amount of the 2018 unpaid municipal property taxes is approximately 22% of the total annual tax levy and budgeted revenue.

A continuing trend of nonpayment of property taxes in 2019 and beyond will create enormous challenges with the County’s inability to collect on the primary source of revenue to operate the municipality.  This has a significant impact on current and future budget decisions based on the fact of the reduced ability to collect these taxes potentially having an impact on the County’s viability and sustainability.

Adding to the problem is the obligation for Woodlands County to pay to the province the education foundation tax despite the inability to collect this levy.

Woodlands County has reached out to those energy companies who have unpaid 2018 taxes to work out solutions for payment of all or a portion of the unpaid taxes.   A course of action Council hopes will identify resolutions to this dilemma for both the County and the energy companies.

Woodland County is not alone in facing this predicament. As reported by the Rural Municipalities Association (RMA), 69 municipal districts and counties across the province reported at the end of September 2018 unpaid municipal property taxes had grown to an excess of $18 million dollars.

Woodlands County is working closely with the RMA and expects the matter to be addressed at the RMA’s spring convention in March.  The County has also been in communication with Alberta Municipal Affairs requesting the department to consider available options to assist

municipalities such as Woodlands County to deal with this substantial issue.

Mayor and Council have committed to working with all parties to find an acceptable resolution

to ensure the long-term viability and sustainability of Woodlands County.