Town introduces non-residential tax incentive bylaw

By John Watson Local Journalism Initiative Reporter

During the regular Town of Strathmore council meeting on Feb. 9, council passed Bylaw 22-03, the non-residential municipal tax incentive bylaw that is designed to attract business investment to the town.

In late 2021, administration prepared a business case to develop initiatives, support economic growth and encourage non-residential investment in and around the town. 

On Dec. 15, 2021, council gave first reading to Bylaw 21-31, the non-residential municipal tax incentive bylaw. Following the first reading, though subsequent changes were made that did not alter the purpose nor intent of the bylaw, they were substantial enough to warrant drafting a new bylaw that incorporated the changes.

Bylaw 22-03, as now passed by council, requires that a development or expansion must increase the total assessment of a venture by at least $10 million, create employment for a minimum of 25 individuals and comprise at least 2,800 square meters of area in order to be eligible for the benefit.

The then applicable tax redemption is calculated by first determining the total increase to a business or enterprise’s tax assessment created by the new development, then taking a percentage of the corresponding tax increase.

The rebate, as outlined by Town administration, is set at 100 per cent for the first year that the new development is complete and operational, then is reduced by 20 per cent each year for the following four years.

Taxes will be expected to be paid normally and in full with no rebates or redemptions following the five-year period allotted by the bylaw. 

In shifting from the previous bylaw draft of 21-31 to 22-03, none of the eligibility thresholds: investment amount, total of people employed or square footage requirements, were changed.

According to the bylaw, all non-residential properties located within the Town of Strathmore are eligible for the program. However, properties licensed under the Alberta Gaming, Liquor and Cannabis Act are not eligible for the tax incentive.

“We wanted to be pretty focused in terms of the types of businesses that we attract here,” said Jamie Dugdale, a member of the Town administration.

“This was structured to attract large, mostly industrial development. So we wanted to try to exclude a lot of those things that weren’t.”

Town administration recommended that council pass all three readings of the drafted bylaw as presented, and council followed the recommendation.