Newell County likely adopting tax incentives for commercial projects

By MEDICINE HAT NEWS on February 17, 2023.

https://www.medicinehatnews.com@MedicineHatNews

Newell County is proposing to cap municipal tax rates for major new construction projects in the county around Brooks, along with other tax rebates for new commercial development.

First reading of the proposed bill took place Feb. 9, and would also provide a 50 per cent rebate for five years to new or renovated developments that boost tax assessment value by a minimum of $750,000.

Only non-residential properties would be eligible should the “Municipal Tax Incentive Bylaw” pass third reading.

Linear properties – essentially industrial, oilfield, railway, utility lines and renewable energy projects – that see new construction of renovations in excess of $50 million, would only see a rebate if the mill rate rises above 9.25 mills over a period of 10 years.

The rate for 2022 was 9.04 mills, meaning $9.04 was charged against every $1,000 of assessed value to determine the amount of tax owed.

Both measures could be reduced by council decision if the development requires increased municipal infrastructure spending, according to a public notice published this week.

“The purpose of the incentive is to attract new development to the County of Newell and encourage expansion of existing businesses,” it reads. “Some neighbouring municipalities have a similar tax incentive bylaw, which may leave the County of Newell at a competitive disadvantage.”

Newell County is now accepting public feedback on the proposal from residents through its website until March 15.