BONNYVILLE – New incentives are on the way for new and expanding businesses in the Town of Bonnyville – and they are expected to be in place until 2032.
The current Town council has prioritized creating a municipal climate for economic growth and is taking steps to achieve it.
First creating a website, investbonnyville.ca, with the exclusive purpose of highlighting the benefits of starting a business in town, council is now looking to waive municipal taxes for up to five years for new and growing businesses that qualify.
During a Governance and Priorities Meeting on Sept. 19, council directed administration to create a Non-Residential Tax Incentive Bylaw to aid in attracting investment, development and substantial redevelopment and expansion of commercial properties within the town.
A draft of this bylaw was reviewed and updated twice more before being brought to council for first reading on Nov. 14.
This bylaw would allow for qualifying businesses to enter into a Tax Incentive Agreement with the municipality.
The incentives are slated to be a 100 per cent municipal tax exemption for years one to three, 75 per cent for year four, and a 50 per cent exemption for year five.
Businesses would pay their municipal taxes at tax time and would then be refunded their exemption after administration confirms they are adhering to the terms of the Tax Incentive Agreement.
The proposed bylaw is designed to be “ultra-competitive” compared to incentives offered by other municipalities noted Coun. Phil Kushnir.
“We're not losing any money with this bylaw at all. We're just looking at the future and we're trying to build up our downtown and our business centres. That's why we came up with recommendations that we did,” Kushnir stated.
One of the caveats is that new development or expanding businesses must have increased the value of the subject property by at least $25,000 compared to the previous assessment year.
However, any change in valuation for the assessment of land and any linear property is excluded from this calculation.
To qualify, the property must be located within the geographical boundaries of the town and the new or renovated development must not have any arrears or have amounts owing in regard to property tax, utilities, or other fees owing to the Town.
As well, the calculation of the municipal tax exemption and exemption period will not be confirmed until all construction on the qualifying property is complete, the development is inspected and approved, and the property is assessed for taxation, according to Town documents.
Council approved the first reading of the Non-Residential Tax Incentive Bylaw during their regular council meeting on Nov. 14, and will have the opportunity to pass the proposed bylaw following an upcoming public hearing.
If the bylaw is passed, applications must be received by Oct. 1 of the year prior to the year in which the requested exemption is to commence, with the exception of this first year.
