A proposed new law would allow Alberta municipalities to offer tax breaks for up to 15 years to businesses willing to set up in commercial or industrial areas of their town or city.
Bill 7, the Municipal Government (Property Tax Incentives) Amendment Act, gives municipalities to new powers to pass bylaws to provide tax exemptions, reductions and deferrals.
Right now, municipalities can only cancel, refund or defer taxes based on hardship, with decisions made on a case-by-case basis.
The government said it hopes municipalities can use these new powers to encourage economic development in brownfield areas — vacant, derelict or under-utilized commercial or industrial property which are, or may be, contaminated.
The tax breaks can’t be in place any longer than 15 years.
Government officials say these tax exemption programs have been used elsewhere.
A pilot project in Medicine Hat will use tax breaks to encourage development on two properties owned by the city: the former Medicine Hat arena and a parking lot across from city hall.
City council introduced a bylaw in April which used new powers granted under changes to the Municipal Government Act.