Town amends non-residential municipal tax incentive bylaw

By John Watson Local Journalism Initiative Reporter

The Town of Strathmore amended the Non-Residential Municipal Tax Incentive Amendment bylaw, No. 25-10, during the March 19 regular meeting of council.

Presented to council by Jamie Dugdale, director of infrastructure, operations, and development services, the proposed amendment was prepared to better support local economic growth and encourage increased non-residential investment in the town.

He explained a business case was originally prepared in 2022 to develop a tax incentive bylaw to attract non-residential development, and to remain competitive in the region.

The amendment which was proposed before council was to remove the eligibility requirement that a business provide at least 25 employees on site, in order to include new business such as those in high tech and data processing industries which often have few employees working at an on-site location.

“The requirement to increase total assessment by at least $10 million and to include at least 2,800 square meters of area on one floor or level would remain,” said Dugdale. “This initiative makes Strathmore more attractive to large non-residential developments; the benefits are jobs, tax revenue increased, profile within the province, and major non-residential development is a key pillar of Strathmore’s economy as well as council’s strategic plan.”

From an organizational standpoint, the goal is to increase assessment and employment in order to improve the overall viability of the local community long term, and support Strathmore as a key service node in the region.

Angela Groeneveld, senior manager of economic stability and investment, explained a lower threshold will open the incentive to a wider range of businesses, including startup and small business enterprises. 

“In today’s economy, smaller businesses are less likely to hire large numbers of staff, versus lower and on contract. Those are types of businesses that I tracked last year that are coming in, and those are the current ones that we are working with investments,” she said.

Chief Administrative Officer, Kevin Scoble, explained new residential development is a net cost to the town and is subsidized by existing property owners. 

Building houses for businesses in Strathmore helps the existing taxpayer base; business properties are taxed by the town differently than residential and nets profit for the municipality.

Coun. Jason Montgomery motioned that council give first and second readings to the bylaw. These were passed unanimously. 

Dugdale clarified the tax incentive reduces from a 100 per cent incentive over five years down to zero, eventually evening out with other established non-residential taxation.

Coun. Denise Peterson motioned that council grant permission for third reading, followed by a motion by Coun. Melissa Langmaid to hold third reading. These motions were also carried unanimously.