The County of Stettler will move faster on a business tax incentive after councillors stated they want something attractive and effective as soon as possible. The resolution to move ahead with a business tax incentive was made at the Sept. 11 regular meeting of council.
Reeve Larry Clarke asked that council receive an update on the idea of a business tax incentive; it was stated at the meeting the idea has been discussed previously in committee but not in the regular meeting.
Director of Municipal Services Andrew Brysiuk stated at the committee level councillors noted they were interested in a business tax incentive bylaw aimed at new businesses.
Brysiuk stated staff have been working through a draft bylaw but it takes some time. Brysiuk stated taking into account factors like construction cost versus assessed value can be complicated.
Reeve Clarke responded he feels a bylaw is the right way to go as it could promote business which in effect increases property tax assessment and increases revenue to the municipality, along with promoting growth in the community too.
Coun. James Nibourg added he knows the county staff have many projects on their plates, but perhaps the business tax incentive bylaw needs to be marked as a priority so it moves forward more quickly.
Chief Administrative Officer (CAO) Yvette Cassidy reminded councillors that the County of Stettler has done a lot to help businesses in the past with some developers getting a benefit twice. She stated that the County of Stettler council in the past has approved certain tax reductions based on a direct request from developers.
Cassidy stated a direct appeal helps keep the lines of communication open and keeps the county in the loop when it comes to future plans.
She suggested the tax incentive bylaw be part of an upcoming strategic planning session.
It seemed councillors wanted to move more quickly than that, though.
Coun. Justin Stevens mused on splitting such a tax incentive bylaw into two parts: one for new developments, which could be a bit easier to draft due to fewer variables, while a second part for improvements to existing developments could be left for approval when it’s ready.
Stevens noted that an ad hoc approach really can’t be touted to prospective developers who likely want certainty before they make a commitment.
Brysiuk stated writing and considering the bylaw in phases is possible, with the first phase, new developments, perhaps ready for discussion by the next regular council meeting.
Coun. Nibourg liked that approach, adding it’s best to get some of the bylaw into place as soon as possible.
Coun. Les Stulberg noted he also agreed, observing as oil and gas assessments shrink, the County of Stettler will need to find other sources of revenue to keep its tax base the same. Stulberg noted other municipalities have business tax incentives, so the County of Stettler is in effect competing with them.
Coun. Dave Grover was a bit more cautious; he cited as examples a meat processor and a straw plant, two new developments which the County of Stettler staff spent a lot of time working with and which “…never developed into anything.”
Grover added he supported the tax incentive idea but one that helped both new and existing developments because the county should’t turn anybody away.
Reeve Clarke noted a tax incentive is a tool business owners can use to make a decision.
“It’s something people can look at and if they have to come in front of us they know roughly what to expect,” stated Clarke. “Municipalities are competing for business all over our province whether it be urban or rural so we have to become attractive, try to get some here.”
Stu Salkeld
Local Journalism Initiative reporter
ECA Review
