Richard Froese
South Peace News

Big Lakes County has finalized an application asking for credit from the provincial government for uncollectable educational and industrial taxes.

At its meeting Jan. 8, council approved an application for the Provincial Education Requisition Credit (PERC) for uncollectable education taxes on oil and gas properties and Designated Industrial Property Tax Credit (DIRC) program for several tax rolls.

“A recovery of $1,001,104.57 will be recognized for PERC and $25,833.42 for DIRC,” says Joe Zdeb, director of corporate services.

The figure is based on the uncollectable education property taxes on oil and gas properties amounting to $9,460,392.81, he says.

“This is a welcome program as municipalities are required to remit education property taxes regardless of whether it’s been collected from taxpayers,” Zdeb says.

The application was due by Jan. 15 for the previous years of uncollectable taxes.

“The PERC and DIRC provides municipalities with an education property tax credit equal to the uncollectable education property taxes and delinquent oil and gas properties,” Zdeb says.

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.

He adds the term of DIRC does not have an expiry date and can be applied retroactively to the 2018 tax years.

“In cases where the unpaid taxes have not been written off, the municipality will be required to report the status of tax recovery on an annual basis,” Zdeb says.

“If the uncollectable taxes are eventually recovered in whole or in part, this must be reported to the Alberta ministry of municipal affairs and the recovered amounts must be remitted to the Alberta School Foundation Fund or Municipal Affairs provincial assessor.”