(File photo by The Canadian Press/Jeff McIntosh)

By Sheldon Spackman

alternative plan

Red Deer County offers tax break to energy companies

Nov 17, 2020 | 3:15 PM

Red Deer County council has authorized an alternative tax payment plan for struggling oil and gas companies in central Alberta.

The approval granted last Tuesday, allows oil and gas companies operating in the county that are currently in default but still have a viable business, to apply for the program in hopes of the company regaining financial compliance.

County officials note that the oil and gas industry is having difficulty keeping up with property taxes due to the current economic environment related to lower oil prices. Because of these hardships, the County is expecting to record $1.85 million of bad debt expense in 2020, with total arrears relating to oil and gas currently sitting at $6,560,905.

Officials point out that the industry does not have the same tax recovery process as other properties. Alberta Municipalities cannot seize a pipeline for example, and sell it to recover unpaid property taxes as they are able to with other types of property.

Based on the limited action Red Deer County is permitted to take regarding tax recovery, the proposed alternative tax payment plan is only applicable to the Oil and Gas Industry. However, commercial businesses struggling financially can request the alternative tax payment plan as well.

best in the province

Red Deer sees big drop in unemployment

10h ago

march 19-21

Podcast: The Thurber cast of 'Newsies' talks upcoming theatre production

10h ago

Last Seen Feb. 26, 2026

Missing: Jennifer Thom, 15, of Ponoka

13h ago

Officials say this request would go to council for review, in which case a one-off exception may be granted.

Under the current PAP (Pre Authorized Payment) plan, a taxpayer may make monthly installments to Red Deer County in order to alleviate the hardship of paying taxes in one lump sum payment when they are due.

The proposed alternative tax payment plan would grant an exception to allow an oil and gas company with outstanding taxes, to enter into the normal PAP plan in order to stay on top of current taxes and would also require a payment plan for the arrears.

Other than unpaid taxes, officials say the account must be in good standing. Taxpayers taking advantage of this program would be required to sign an agreement and make all payments on time.