Council approves first non-residential tax incentive

By Rob Vogt

Claresholm town council has approved a tax incentive application submitted under the non-residential tax incentive bylaw, after determining the applicant meets all eligibility criteria as outlined in the bylaw.
Further, a credit to the 2025 municipal portion of the property taxes for $19,437 will be applied to the corresponding tax roll as set out in the bylaw.
The decision came at council’s July 14 after a report by Abe Tinney, the town’s chief administrative officer.
He explained the town has received an application for a property tax incentive from 2291174 Alberta Ltd. in accordance with the non-residential tax incentive bylaw, which authorizes municipal tax exemptions to encourage development and redevelopment of non-residential properties within the Town of Claresholm.
The application relates to a completed non-residential development located within the town boundaries, and Tinney said administration has reviewed the submission for compliance with the criteria outlined in the bylaw.
The applicant has met the following conditions: the property is located within the boundaries of the Town of Claresholm; the development was completed after the effective date of the bylaw; the development is compliant with the land-use bylaw and all other applicable municipal regulations; and all outstanding property taxes have been paid in full, and the property is not in arrears.
The municipal benefit, defined in the bylaw, also exceeds the minimum threshold of $300,000 in assessed value increase attributable solely to the new construction.
It was noted the tax incentive will be applied to the municipal portion of the taxes levied on the increase in assessed value attributable to the development, as follows:
• Year 1 – 100 per cent exemption
The 2024 assessment is $297,000, while the 2025 assessment is $2,274,000.
The eligible incentive assessment is $1,777,000.
The 2025 municipal taxes levied are $22,685.62.
The incentive reimbursement value is $1,777,000 times 0.0109381, which is the 2025 municipal tax rate, for a reimbursement value of $19,437.
• Year 2 – 75 per cent exemption.
This is to be determined upon receipt of the annual assessment and approval of 2026 tax rate bylaw.
• Year 3 – 50 per cent exemption.
This is to be determined upon receipt of the annual assessment and approval of 2027 tax rate bylaw.
• Year 4 – 25 per cent exemption.
This is to be determined upon receipt of the annual assessment and approval of 2028 tax rate bylaw.
• Year 5 and beyond: No exemption.
The property will remain eligible for the tax incentive regardless of changes in ownership, provided the applicant remains in compliance with the conditions of the bylaw.
Should any taxes become unpaid during the term of the incentive, eligibility would be revoked.
Administration recommended council approve the application as submitted, as all conditions outlined within the bylaw were met and approval would be consistent with the intent of the bylaw to promote economic development and redevelopment within Claresholm.
Council then approved the application.