County of Barrhead council has approved a Non-Residential Tax Incentive program.
It aims to further stimulate local economic development by attracting new investment and encouraging expansion of existing development.
The intent of the bylaw, passed June 1, is to leverage authority granted to municipalities through the Municipal Government Act, to provide businesses with incentives to build in the County of Barrhead.
New tax exemptions apply to:
• Non-Residential Assessment and Machinery & Equipment Assessment Classes;
• New construction, equipment, and improvements that result in an increase in assessment.
As a media release explains, new construction or assessment improvements will benefit from a municipal tax exemption for up to three years depending on the value of the increase in non-residential or machinery and equipment assessment. The minimum threshold to qualify for an exemption is a $20,000 increase in assessment. However, a new business investing $25 million could realize approximately $1.3 million in a municipal tax exemption over three years.
“This bylaw is a phenomenal piece of work,” said Reeve Doug Drozd, “as it truly aims to stimulate economic activity and contribute to long-term growth without costing the County money as it’s money we never had.”
Increasing development aligns with the County’s and council’s strategic priorities to attract new investors to the region.
All eligible applicants receive 100 per cent municipal tax exemption in the first year of an assessment increase. A larger increase in assessment could provide an additional 50 per cent to 100 per cent exemption for up to a maximum of three years, according to the release.
The new Non-Residential Tax incentive Bylaw can be read on the County’s website (click the ‘taxation’ folder).