Non-Residential Tax Incentive Program
The County of Minburn is one of the first municipalities in Alberta to take advantage of the recent changes to the Municipal Government Act, which now allows for property tax exemptions on eligible developments.
In order to stimulate investment in the County of Minburn, the Non-Residential Tax Incentive Program offers a tax exemption for up to three years to qualified properties. The tax exemption applies to new commercial and/or industrial developments or refurbishments to existing commercial and/or industrial properties.
Program Objectives
The objectives of the program are to:
- Provide businesses an incentive to build in the County of Minburn.
- Invest in improving existing businesses without having to worry about the immediate burden of addition taxation due to an increase in assessed value.
- Ensure the Municipality stays competitive.
- Attract private investment to the County of Minburn.
- Encourage growth in the tax base that will benefit all those living in the County of Minburn.
Eligibility
The program will exempt eligible commercial and/or industrial developments from paying 100 per cent of the municipal portion of property taxes for a period of up to 3 years. The education and senior citizen portions of the property tax are not exempt; the Municipality will continue to collect these taxes on the land and any existing building(s).
Eligibility criteria:
- Construction of a new non-residential development with an assessed value at or above $250,000.
- Refurbishment of an existing non-residential development that increases the assessed value by at least $250,000.
- Non-residential development my employ, on an annual basis, at least 5 full-time personnel at the location of the development within the County.
- Must be located within an existing Area Structure Plan. Non-residential development outside an existing industrial/commercial area will be considered on a case-by-case basis.
- Must receive all necessary development approvals from the County.
- Must not be in the process of foreclosure, bankruptcy, or receivership.
- Must not have compliance issues, be in violation of a development permit and/or agreement or be in violation of the Safety Codes Act at any time from application to the end of the exemption period.
- Must not be in arrears or have amounts owing with regards to property tax, utilities, or other fees owed to the County.
Ineligible projects:
- Any projects or properties that are classified as Designated Industrial Properties (DIP) by the Province of Alberta.
- Any projects or properties with an assessed value exceeding $5,000,000.
Details of Exemption
- The exemption only applies to municipal taxes. Provincial School and Senior Lodge property requisitions are excluded from any reduction.
- The exemption period begins January 1, 2022 and ends on December 31, 2032.
- Any eligible property will receive the applicable exemption at any time within the exemption period. (Ex. If a $2,000,000 property is operational by November 1, 2032, this property will receive the full 3 years exemption. However, properties becoming operational after December 31, 2032 will not be eligible for the exemption unless the program is extended by County Council).
- Complete applications may be considered and approved in accordance with the Tax Incentive Bylaw before construction on the qualifying property is complete. However, the calculation of exemption and exemption period will not be confirmed until all construction is complete, the development is inspected and approved, and the property is assessed for taxation.
- Eligible properties will receive the first year's exemption in full, regardless of when they become operational during the calendar year.
- The exemption is transferrable to new ownership.
- A property is only eligible for one tax incentive exemption during the exemption period, beginning January 1, 2022 and ending on December 31, 2032.
Calculation of Exemption
- The exemption will be applied to municipal property taxes based on assessed value:
- $250,000 - $500,000 = 2 years of exemption
- $500,000+ - $5,000,000 = 3 years of exemption
- The property will be assessed by the County Assessor following completion of construction of the development, during the regular scheduled period of assessment.
Application for Tax Exemption
- Applicants will need to apply for the tax exemption using this application form.
- Applicants must submit a complete application to the County. The County has the discretion to reject the applications that are incomplete, ineligible, or provided after the deadline.
- Application must be received before construction of the project has commenced.
- Applications returned as incomplete, or ineligible may resubmit one additional time.