M.D. of Taber approves another tax payment agreement

After approving an oil and gas tax extension earlier this year, another company has approached the Municipal District of Taber to follow the same path.

Council had approved a tax payment agreement with Sphere Energy Corp. in August and recently a letter was received from Ascensun Oil and Gas Ltd which allowed council to review their request during their regular meeting held of Oct. 13.

From Ascensun’s perspective, they requested extended time to pay their 2020 property taxes without incurring a penalty.

Their proposal is to make twelve equal instalment payments, beginning Nov. 15 with the final payment on Oct. 15, 2021, for 2020 property taxes.

They will also need to enrol in the Tax Installment Payment Plan, effective Jan. 15, 2021 for payment of 2021 property taxes. Penalties in the amount of $29,492.22 will be waived if the terms of the agreement are met.

“We received a similar request earlier this year for council to consider a tax agreement and in the same context, wave the waiver of the penalty once they enter into that agreement. Administration is recommending really not different than our other recommendation,” added CAO Arlos Crofts.

Council again was receptive to an oil and gas company coming forward to pay their taxes owed.

“I think it’s good they have come forward and have offered to get their taxes paid rather than saying ‘we aren’t going to pay them.’ I think this is as much a win as you can get under these circumstances to have an oil and gas company come forward and make a request help with their taxes as far as an over-time tax payment where they will get them paid,” said Reeve Merrill Harris.

A motion to enter into the Tax Payment Agreement with Ascensun Oil & Gas for payment of 2020 property taxes in the amount of $167,569.46; and the M.D. waive any penalties on the outstanding taxes; and Ascensun Oil & Gas Ltd. must enrol in TIPP, effective Jan. 15, 2021 for payment of 2021 property taxes, was carried.