Province plans to clarify property tax responsibilities for renewables

By Medicine Hat News on April 26, 2024.

@MedicineHatNews

Proposed changes in the Municipal Government Act would spell out which party is responsible for paying property taxes on renewable energy facilities.

Minister Ric McIver tabled a raft of amendments late Thursday, including a change that would specifically designate the owner of a power generation facility as the assessed owner for tax purposes, rather than the owner of the land where it may be leased.

The issue is a common question and point of contention at local government level when wind and solar projects are proposed. Industry officials have said private lease agreements cover issues such as taxation.

Last summer, the province paused all green power approvals until the effects on municipal government, landowners and the agricultural sector could be studied.

“In some cases it’s obvious who to send the tax bill, but if someone is operating a generation facility on someone else’s land, where does the tax bill go,” said McIver during a press availability. “We’ve defined it as the person operating the generation facility.”

The regulation mimics how the assessed party is determined for oil and gas infrastructure, according to ministry officials.

Tax incentives for housing

Cities may soon be able to offer future property tax breaks to new housing projects, if Bill 20 passes.

Municipal Affairs officials state the change comes after the City of Brooks passed a bylaw exempting portions of taxes owed over a four-year period on a declining basis, from a full exemption initially to 25 per cent in year four.

Since the late 2010s, the province has allowed municipalities to offer property tax abatement agreements to spur the clear-up of contaminated industrial or generally other brownfield sites for new development.

The UCP government expanded that in the last term to provide more latitude in local bylaws that are required on a case-by-case basis.

Among other housing changes, municipalities would be required to offer digital access to participate in public hearings on planning and development issues.

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