Title
Provincial Education Requisition Credit (PERC) and Designated Industrial Requisition Credit (DIRC)
Proposed Motions
1. That Administration be directed to apply to recover the education portion of the taxes through the Provincial Education Requisition Credit Program for uncollectible education property taxes on oil and gas properties in the amount of $9,651.34.
2. That Administration be directed to apply to recover the Designated Industrial Requisition portion of the taxes through the Designated Industrial Requisition Credit Program for uncollectible Designated Industrial Property Tax Requisition on oil and gas properties in the amount of $313.58.
Body
Administration Recommendation
Administration supports the proposed motions, as presented.
Purpose
To recover unpaid Education and Designated Industrial RequisitionTaxes pertaining to oil and gas companies.
Summary
With the downturn in the energy industry in recent years, municipalities are finding it increasingly difficult to collect property taxes, often due to insolvency or receivership of oil and gas and other industrial properties. The Province has established two programs to assist municipalities where taxes related to requisitioned amounts cannot be collected from property owners.
The PERC program provides affected municipalities with a credit, equal to the provincial education requisition associated with taxable properties that are delinquent in payment of education property taxes. The PERC credit will be applied to the next ASFF invoice.
The DIRC program provides affected municipalities with a credit, equal to the Designated Industrial property tax requisition associated with taxable properties that are delinquent in payment of the requisition. the DIRC credit will be reflected on the 2025 Designated Industrial Property Tax requisition.
Strategic Plan/Policy/Legal/Staff Implications
Section 347 of the Municipal Government Act allows Council to cancel, reduce, refund or defer taxes as de...
Click here for full text