Title
Write off Uncollectible Property Taxes Relating to Oil and Gas Companies
Proposed Motions
1. That Council approve the write off of municipal, education and seniors taxes and penalties on a number of tax rolls relating to oil and gas companies (see Attachment 1) in the amount of $205,586.55.
2. That Administration apply to recover the education portion of the taxes through the Provincial Education Requisition Credit Program for uncollectable education property taxes on and gas properties in the amount of $32,985.19.
Body
Administration Recommendation
Administration supports the proposed motion.
Purpose
To clear uncollectible taxes and penalties pertaining to Oil and Gas companies from Parkland County's books.
Summary
A number of these properties are now bankrupt, in receivership or are in financial distress therefore do not have the means to pay their outstanding property taxes. Where possible, we have talked to the appointed trustees who have confirmed that there are no available assets remaining to pay the outstanding property taxes. These taxes are now delinquent and should be removed from Parkland County's books.
It is difficult for Parkland County to collect on unpaid Oil and Gas taxes as most Oil and Gas companies do not own the land so we are not able to register a tax notification at Alberta Land Titles for these properties. Part 10, Division 9 of the Municipal Government Act provides for the seizure of personal property of the person responsible for the taxes through a Distress Warrant in satisfaction of the tax arrears. Parkland County would have to seize the goods/personal property and offer them for sale at public auction. This is not cost effective due to the nature of the assets. Alternatively, other remedies may include suing and obtaining judgement, garnishment of income and collection of rent; this is not viable as the companies do not have funds available.
Strategic Plan/Policy/Legal/Staff Implications
Section 347 of the...
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