Chris Clegg
South Peace News
McLennan town council is trying to encourage development with its borders.
Council passed property tax incentive bylaws for both residential and non-residential properties at its April 14 meeting.
CAO Lorraine Willier told council the incentives were permitted but must be done by bylaw, not policy. She explained a bylaw is more of a legal document than policy, which acts more as a guideline.
The bylaw reads that council may, by passing a bylaw, “for the purpose of encouraging the development or revitalization of properties in an assessment class specified . . .. for the general benefit of the municipality, provide for full or partial exemptions from taxation.”
The incentive applies to new construction of residential properties and/or renovations to an existing residential property, as well as non-residential (business) properties, and applies only to the municipal portion of property taxes.
New residential and non-residential developments will be exempt from the municipal portion of taxes equal to:
- 100 per cent of the value of the current year’s municipal tax levy in the first year;
- 66 per cent of the value of the current year’s municipal tax levy in the second year;
- 33 per cent of the value of the current year’s municipal tax levy in the third year.
The same rates apply to residential and non-residential expansion or renovations.
Exemptions apply for the taxation year following completion of construction or renovation.
To be eligible, the property owner shall have no outstanding taxes owing, have an approved development permit, conform to all of McLennan’s Land-Use Bylaws and other provincial legislation, and submit proper documents proving compliance with building codes.
In regard to non-residential properties, the owner is eligible to apply only once until 2038 for each development permit.