BARRHEAD - In 2024, eight County of Barrhead businesses saved over $18,000 in property taxes by taking advantage of the municipality's Non-residential Tax Incentive.
On Dec. 17, councillors approved the cancellation of nine 2024 property tax rolls, eight of which were from residents who qualified for a reduction of their taxes under the non-residential tax incentive, in what finance and administration director Tamara Molzahn called a "housekeeping item."
Council approved the initiative in June 2021 through the self-titled bylaw in hopes of increasing economic activity in the municipality.
As part of the initiative, business owners would see their non-residential property tax reduced on a graduating scale based on the amount they expand or improve their operations.
The municipality's other goal for the initiative was to increase the diversity of its non-residential tax base, as a large percentage is currently energy sector-related. Under the bylaw, a non-residential property that made improvements through new construction or machinery and/or replacing or upgrading a facility that increased the assessment value would be eligible to receive a portion of their property tax exempted.
In the first year, changes and additions to the property would get a 100 per cent exemption. In the second and third years, the amount exempted would vary depending on the value of the change. Improvements worth $100,001 and $500,000 in the second year would see a 50 per cent exemption. For assessment value increases from $500,0001 to $1,000,000, the exemption increases to 75 per cent. If the assessed value of the improvements is worth more than $5,000,000, companies would see a 100 per cent exemption.
In the third year, assessed improvements of $5,000,000 continue to receive a 100 per cent exemption, while improvements from $1,000,001 to $5,000,000 receive a 50 per cent exemption.
"The first year it came into effect, in 2022, we cancelled one tax roll for $577.86," Molzahn said. "The following year, we had a much larger uptake with nine rolls cancelling just over $17,000."
Reeve Doug Drozd said it was interesting to see the range of exemptions for 2024, saying they ranged from well over $9,000 to under $500.
"It is quite a range of projects businesses undertook to take advantage of the initiative," he said. "For the mom-and-pop-type shops to take advantage of savings such as the one under $500 can make quite a difference, especially when you are just trying to start out."
Barry Kerton, TownandCountryToday.com
