Table of contents

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:

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

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