Economic Development – Municipal Tax Exemption Policy – New Commercial Development
The purpose of this policy is to:
- Encourage new development within the Municipality
- Provide tax relief to new businesses during the construction phase
- Contribute to economic development and growth in the Municipality
Section 295 of The Municipalities Act provides municipalities with the ability to exempt specific properties from taxation for a period of time not exceeding five (5) years.
- Policies and Conditions
Council may enter into an agreement with a property owner or occupant, as applicable to provide certain tax exemptions under the following conditions:
- For commercial buildings with an estimated taxable assessment valued over $500,000, certain tax exemptions will be provided for a period of four (4) years at the following percentages:
– Year 1: 100 % exemption
– Year 2: 100 % exemption
– Year 3: 50 % exemption
– Year 4: 25% exemption
- The tax exemption applies to permanent new buildings only and is not applicable to building renovations, expansions or taxes levied on land.
- The tax exemption will apply to the municipal tax levy only. The exemption will not apply to the education portion of the tax levy.
- The tax emption will begin on the same year of the addition of the building onto the Assessment Roll by the Saskatchewan Assessment Management Agency (SAMA).
- The tax exemption, equivalent to the amount of municipal taxes for the new building will appear on the Tax Notice as a credit, to offset the municipal taxes due.
- In order to qualify, all of the following criteria must be met:
- The applicant must be a legally incorporated entity;
- The applicant must be current with municipal taxes (no tax arrears);
- The proposed development must be subject to commercial/industrial taxation;
- The applicant must submit a Tax Exemption Application Form when obtaining a Building Permit.
3.7 Where a tax exemption has been approved under this policy and the applicant has entered into a Tax Exemption Agreement with the Municipality, the applicant remains responsible for payment of taxes levied. Taxes must be paid in full by a deadline of December 31st annually. Should the applicant fail to keep the taxes current during the term of the Tax Exemption Agreement, this will result in a default of the agreement. In the event of default, any remaining exemption under the agreement will be forfeited and no further exemptions will be granted by the Municipality to the applicant.
3.8 Temporary buildings (no foundation), work camps, home based businesses and any businesses that are subject to Grant-in-Lieu are not eligible for a tax exemption.
3.9 A tax exemption that is granted under this policy may be revoked by Council if, at any time, the Municipality determines that the applicant is in violation of any municipal bylaws or agreements with the Municipality or has failed to meet the requirements or conditions of any permits or approvals issued by the Municipality.