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Status: Received royal assent in 2019.
Ministry responsible: Municipal Affairs
Overview
New legislation will help municipalities attract investment and development by giving them the power to offer stronger property tax incentives to business and industry:
- The Municipal Government (Property Tax Incentives) Amendment Act – received royal assent June 28, 2019
- The Municipal Government (Machinery and Equipment Tax Incentives) Amendment Act – received royal assent December 5, 2019
These multi-year tax incentives give municipalities the tools they need to encourage economic development by reducing the burden of starting a new business, and providing more incentives to redevelop brownfield properties and revitalize communities.
Key changes
The Municipal Government (Property Tax Incentives) Amendment Act:
- allows municipalities to decide if, and how, to implement the tax incentives by passing a single bylaw that will:
- offer incentives to reduce, exempt or defer the collection of property taxes for non-residential properties for up to 15 years, with the option for renewal
- establish an eligibility criteria and application process to streamline tax incentive offers, instead of requiring a separate council resolution or bylaw for each property
The Municipalities Government Amendment Act (Machinery and Equipment Tax Incentives):
- allows municipalities to pass a bylaw enabling them to reduce or eliminate property taxes for up to 15 years on machinery and equipment
These changes make Alberta a highly attractive destination for investment by providing one of the longest municipal tax incentive timelines in North America:
- Saskatchewan allows property tax incentives for up to 5 years
- B.C. allows them for up to 10 years
- Louisiana offers 5-year incentives with an option to renew for an additional 5 years
- Texas offers local tax incentives for up to 10 years
Next steps
- The Municipal Government (Property Tax Incentives) Amendment Act came into effect June 28, 2019
- The Municipalities Government Amendment Act (Machinery and Equipment Tax Incentives) came into effect December 5, 2019
News
- Enhancing economic tools for municipalities (November 27, 2019)
- Revitalizing municipalities across Alberta (June 4, 2019)
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