Sturgeon County councillors called for a crackdown on tax defaulters after agreeing to write off over half a million dollars in uncollectable taxes.
Council voted 6-1 (Coun. Dan Derouin opposed) to write off $555,665.65 in uncollectible taxes at their Nov. 24 meeting.
While it is not unusual for governments to write off uncollectible taxes each year, this was the second year in a row where Sturgeon County's write-off exceeded $100,000. Council wrote off just under $1 million last year, compared to about $40,000 in 2018 and around $73,000 in 2017.
Council heard this year’s write-offs were related to 10 bankrupt companies that would likely not have any money left over to pay taxes once they pay what they owe to secured creditors (in bankruptcies, secured creditors get their share of the remaining assets first, and anything left goes to unsecured creditors such as municipalities).
Council heard it might get about $129,000 from the province as a result of uncollected school taxes from these companies.
Derouin said he opposed this write-off out of principal, and was infuriated that people were skipping out on taxes while others were struggling to pay their bills.
“They’re pushing their problems onto us.”
Derouin called on administration to bring in security deposits or monthly payments to stop these defaults from happening.
Coun. Wayne Bokenfohr concurred, and suggested the county try to blacklist companies that shirk taxes this way when it comes to future contracts and approvals.
Mayor Alanna Hnatiw noted many Alberta communities were out millions in taxes due to being unsecured creditors of bankrupt companies. Municipalities had called on the province to do more to track who was getting oil and gas licenses so bad actors couldn’t just change their name and get new approvals every time they went bust. The province, though, has said “those licensing bodies are not bill collectors."
Council heard administration budgeted $225,000 for tax write-offs this year and would ask to increase this to $415,600 in 2021 based on economic trends.
