Chris Clegg
South Peace News
It will cost future developers and homeowners a lot less money in taxes in the coming years.
High Prairie town council passed a tax incentive policy at its July 8 meeting which calls for reductions in taxes over a five-year period after construction is completed.
Owners of residential and commercial properties will now pay zero per cent of the municipal tax portion in the first year, 25 per cent the second year, 50 per cent the third year, 75 per cent the fourth year and 100 per cent the fifth year.
By law, all municipalities in Alberta can only forgive the municipal portion of taxes. It was a rule all members of council were aware of during debate.
Homeowners and commercial property owners are reminded the tax incentive begins only after construction is completed.
In opening debate, CAO David Joy told council he liked the graduated municipal tax plan, which council eventually approved. He stressed the condition the owner must build within two years of purchase.
Another option to encourage development was to reduce the price of Town-owned lots. Mayor Brian Panasiuk said he preferred the tax reduction which summed up council’s wishes.
Considerable debate occurred on other options but council decided to delay those debates. Other options included reducing the price of Town-owned lots and decreasing development costs such as waiving permit fees, etc.
Panasiuk also proposed an infill development tax break. Infills are properties which the owner demolishes the existing building and constructs a new home or business.
High Prairie is not the only town to pass a tax incentive policy recently. At its April 14 meeting, McLennan town council passed a similar policy for residential and non-residential properties.
McLennan’s incentive applies to new construction of residential properties and/or renovations to an existing residential property, as well as non-residential properties and, like High Prairie, only applies to the municipal portion of taxes. Tax breaks are 100 per cent for the first year, 66 per cent the second year, and 33 per cent the third year, before paying full tax the fourth year.
To qualify in High Prairie and McLennan no taxes can be in arrears.