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Non-Residential Tax Incentive Program

The County of Minburn is one of the first municipalities in Alberta to take advantage of the recent changes to the Municipal Government Act, which now allows for property tax exemptions on eligible developments.

In order to stimulate investment in the County of Minburn, the Non-Residential Tax Incentive Program offers a tax exemption for up to three years to qualified properties. The tax exemption applies to new commercial and/or industrial developments or refurbishments to existing commercial and/or industrial properties.

Interested? Book a pre-application meeting with Planning and Development today!

Program Objectives 

The objectives of the program are to:

  • Provide businesses an incentive to build in the County of Minburn.
  • Invest in improving existing businesses without having to worry about the immediate burden of addition taxation due to an increase in assessed value.
  • Ensure the Municipality stays competitive.
  • Attract private investment to the County of Minburn.
  • Encourage growth in the tax base that will benefit all those living in the County of Minburn.

Eligibility

The program will exempt eligible commercial and/or industrial developments from paying 100 per cent of the municipal portion of property taxes for a period of up to 3 years. The education and senior citizen portions of the property tax are not exempt; the Municipality will continue to collect these taxes on the land and any existing building(s).

Eligibility criteria:

  • Construction of a new non-residential development with an assessed value at or above $250,000.
  • Refurbishment of an existing non-residential development that increases the assessed value by at least $250,000.
  • Non-residential development my employ, on an annual basis, at least 5 full-time personnel at the location of the development within the County.
  • Must be located within an existing Area Structure Plan. Non-residential development outside an existing industrial/commercial area will be considered on a case-by-case basis.
  • Must receive all necessary development approvals from the County.
  • Must not be in the process of foreclosure, bankruptcy, or receivership.
  • Must not have compliance issues, be in violation of a development permit and/or agreement or be in violation of the Safety Codes Act at any time from application to the end of the exemption period.
  • Must not be in arrears or have amounts owing with regards to property tax, utilities, or other fees owed to the County.

Ineligible projects:

  • Any projects or properties that are classified as Designated Industrial Properties (DIP) by the Province of Alberta.
  • Any projects or properties with an assessed value exceeding $5,000,000.

Details of Exemption

  • The exemption only applies to municipal taxes. Provincial School and Senior Lodge property requisitions are excluded from any reduction.
  • The exemption period begins January 1, 2022 and ends on December 31, 2032.
  • Any eligible property will receive the applicable exemption at any time within the exemption period. (Ex. If a $2,000,000 property is operational by November 1, 2032, this property will receive the full 3 years exemption. However, properties becoming operational after December 31, 2032 will not be eligible for the exemption unless the program is extended by County Council).
  • Complete applications may be considered and approved in accordance with the Tax Incentive Bylaw before construction on the qualifying property is complete. However, the calculation of exemption and exemption period will not be confirmed until all construction is complete, the development is inspected and approved, and the property is assessed for taxation.
  • Eligible properties will receive the first year's exemption in full, regardless of when they become operational during the calendar year.
  • The exemption is transferrable to new ownership.
  • A property is only eligible for one tax incentive exemption during the exemption period, beginning January 1, 2022 and ending on December 31, 2032.

Calculation of Exemption

  • The exemption will be applied to municipal property taxes based on assessed value:
    • $250,000 - $500,000 = 2 years of exemption
    • $500,000+ - $5,000,000 = 3 years of exemption
  • The property will be assessed by the County Assessor following completion of construction of the development, during the regular scheduled period of assessment.

Application for Tax Exemption

  • Applicants will need to apply for the tax exemption using this application form.
  • Applicants must submit a complete application to the County. The County has the discretion to reject the applications that are incomplete, ineligible, or provided after the deadline.
  • Application must be received before construction of the project has commenced.
  • Applications returned as incomplete, or ineligible may resubmit one additional time.

Frequently asked questions

Commercial and industrial development uses are included in Sections 8.6, 8.12, 8.13, 8.18, and 8.19 of the Land Use Bylaw 1254-16, as amended. Commercial and industrial uses include but not limited to: auctioneering establishment, bed and breakfast operations, commercial greenhouse/plant nursery, commercial storage, contractor services, drive-through businesses, food and beverage establishments, food and beverage product facilities, funeral home/chapel, heavy industry, heavy equipment sales and service, marijuana production facility, manufactured/modular dwelling sales, fabrication, and service, outdoor storage, personal service establishments, rural industry, RV storage, repair service establishments, second hand store, convenience retail, retail gasoline and petroleum product sales, salvage/wrecking establishment, specialty retail, small animal grooming, transit terminal, transportation facility, transportation service establishment, vehicle and equipment sales and leasing, vehicle service establishments, veterinary service, visitor information centers, warehouses, agricultural service facilities, agricultural processing industry, bulk fuel depot, commercial school, minor concrete/asphalt plant, equipment fabrication, indoor recreation establishment, quasi-public uses, recycling depot, recycling drop off, and vehicle washing establishments.

All uses are defined within Section 1.3.2.0 of the Land Use Bylaw 1254-16, as amended.

The applicant will need the development permit, Safety Code Permits (building, plumbing, gas, private sewage, electrical), and roadside development approval. The Planning and Development Officer is responsible for issuing the development permit, the Inspections Group Inc. issues the Safety Code Permits, and Alberta Transportation issues the roadside development permit (if applicable). 

The pre-application meeting is a vital step in the program. At the meeting, the applicant will inform Planning and Development of their intent for the parcel and type of development that is to occur. The applicant will be informed of the requirements of the program for eligible developments.  

Only the municipal portion of property taxes are exempt. In 2021, the municipal portion makes up 84% of property taxes. The remaining taxes are for education (15%) and seniors (1%).  

The tax exemption would be cancelled when there has been a breach of the Tax Incentive Bylaw and/or agreement. In the event that the County cancels an exemption, a written decision would be provided by the County to the applicant.

The written decision (agreement) will be signed after the application is deemed complete. The agreement requires the owner to abide by the rules set out in the bylaw and addresses the following:

The application can be downloaded here.

No, the tax exemption applies only to new commercial and/or industrial development improvements, specifically the construction of or addition of a new building. Property taxes, including the municipal portion, will continue to be collected on the land.