Minister Madu, with MLA Jordan Walker, MLA Jackie Armstrong-Homeniuk, MLA Nate Glubish, Mayor Rod Frank and Patrick Shaver

By Dori Modney with files from the Canadian Press

Alberta changing rules to help municipalities attract business with tax breaks

Jun 4, 2019 | 5:46 PM

EDMONTON — Alberta has introduced legislation that would give municipalities more flexibility to offer business tax breaks.

The bill, introduced by Municipal Affairs Minister Kaycee Madu, would allow councils to offer multi-year tax exemptions, reductions or deferrals on non-residential properties

“This legislation would empower municipalities to attract investment, create jobs and realize their full economic potential. Municipalities deserve the freedom and opportunity to make the choices that fit them best. I look forward to seeing this legislation bolster investment and economic development across our great province.”

Under current law, councils have little room to manoeuvre on tax forgiveness and can only provide tax relief in cases of hardship.

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The new bill proposes letting municipal councils design their own tax programs to fit the businesses they are trying to attract. If passed, Bill 7 would allow municipalities to provide property tax incentives for up to 15 years, down from the year-to-year incentives they were allowed to provide previously.

Madu noted that the bill would give Alberta a competitive advantage over jurisdictions across Canada and the United States.

Saskatchewan currently allows property tax incentives for up to five years, while B.C. permits them for up to 10. South of the border, Texas enables local tax incentives for up to 10 years, while Louisiana offers five-year incentives with an option to renew for an additional five years.