Lloydminster is trying to recoup some taxes that have been requisitioned by the province of Alberta.
There are two orphan well property tax rolls that have outstanding balances from 2023 to 2025. The city is listed as an unsecured creditor on the prior company’s receivership.
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The city hopes to get some money back through the application for the Provincial Education Requisition Credit (PERC) and the designated Industrial Requisition Credit (DIRC).
“The program would allow us to recoup the education taxes that have been requisitioned by the province of Alberta,” said Adele Wakaruk, executive manager, corporate services, at the Sept. 22 council meeting.
The credits only apply for properties on the Alberta side of Lloydminster.
While this is the first time it’s come across the desk of Lloydminster council, its been a prevalent issue across Alberta.
“This really brings home what our rural neighbours across Alberta have been fighting and it’s very evident,” said Mayor Gerald Aalbers. “The municipality is on the short end of the stick because we’re an unsecured creditor, even though we’ve provided road access in some cases and they receive the services when they were an operating company. This is the challenge that Alberta is currently seeing and as stated it’s the first time it’s made its way to our council table in nine years.”
The wells will eventually be reclaimed by the Orphan Well Fund.
“The orphan well fund it’s been mentioned by administration will take over it’ll go on a priority list of being reclaimed. They will salvage whatever surface equipment and salvageable they can get,” said Aalbers. “Since we’re not a secured creditor, we won’t see any of that money.”
With the application for the two credits being submitted, the city will be able to get back some of the education levy.
“The most we can apply for is the $1,100 and change,” said Aalbers.
Council passed two motions, the first is to apply for PERC and DIRC. The other will see the city write off $11,252.19 in taxes less any amount that is collected through their PERC application.
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