Rocky Mountain House town council further debated giving a tax break to entrepreneurs who put shovels in the ground for new businesses.
A draft tentatively titled Greenfield Land Development Tax Incentive would potentially see the Town either defer taxes or cut them altogether for businesses who set up shop on previously empty land plots.
Among the stipulations to be eligible for the break would be a subdivision plan approved by the Town and a land title agreement in place.
Exactly how much of a break these potential owners would receive was up for debate.
In the draft bylaw, land developers would pay the current mill rate that’s placed on farmland until such time a business on the plot is sold, says Rocky Mountain House CAO, Dean Krause. After a business or non-residential building is put up, it would then be subject to the normal mill rate placed on non-residential businesses.
Mayor Debbie Baich questioned if the bylaw should include a deadline should the roughed-in plot not be sold.
A period of five to ten years was suggested by council members.
Krause mentioned a clause in the draft bylaw that would see the tax breaks only kick in once development is greenlit and well underway.
Councillor Len Phillips suggested moving forward with developing the bylaw.
“It will incentivize someone to subdivide a raw piece of land because the taxes are going to be a hinderance to do it,” says Phillips. “You aren’t going to be paying taxes on something you haven’t sold yet, it’s going to be taxed once it’s sold. So I think this will incentivize more development, and that’s what we’re looking for in the town, we’re looking for more development and more land to be shovel-ready.”
The program, if approved would run from 2025 to 2028.
Council will review the draft of the bylaw on Aug. 20, 2024 with a public hearing to follow.
You can read it here.
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READ MORE: Rocky Mountain House town council considers tax incentive for new non-residential development
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