WESTLOCK – Westlock County councillors are hoping to recoup at least a portion of outstanding oil and gas taxes from 2020 totaling $318,667.55 through the Provincial Education Requisition Credit (PERC) and Designated Industrial Requisition Credit (DIRC).
During the Jan. 25 meeting, councillor voted unanimously to support the application, which was submitted prior to the Jan. 15 deadline.
The county hopes for a $22,765.52 grant to offset unpaid school tax requisition and an additional $590.51 to offset unpaid designated industrial property requisition. These grants will be added as unbudgeted revenue to county coffers.
In a report to council, administration noted the total outstanding amount on all property taxes as of Dec. 31, 2021, is $1,311,639.25. As part of the year-end audit, an analysis of doubtful accounts receivable will be performed to ensure enough funds are set aside if taxes are uncollected.
The estimated allowance for all doubtful accounts is budgeted at approximately $1,070,000 with additional tax arrears expected to be recovered through the tax sale recovery process.
Administration also noted that the outstanding taxes have already been included in the budgeted bad debt expense and that there is sufficient allowance for doubtful accounts to cover the portion relating to the PERC and DIRC application.
