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Business group has tax info for council

By TREENA MIELKE

A group of Rimbey businessmen, upset over council’s decision to eliminate tax incentives, have formed their own organization to encourage development in town.

Spokesperson Steffen Olsen said a group of about 30 businessmen met last Monday at the Best Western Rimstone Ridge Hotel.

“We want to move forward with a positive attitude,” he said. “We are not trying to take over from the chamber, we just want to encourage development in Rimbey.”

Olsen said the group has done a great deal of research on tax incentives and discovered there are such incentives in other communities.

“We have done a lot of work and gathered a lot of information and found (websites of) about 30 municipalities which have bylaws which state they have tax incentives.”

Some of the municipalities Olson said use tax incentives are Bashaw, Beaverlodge, Brazeau County, Bruderheim, Coronation, Grande Cache, Hinton, Lethbridge, Mayerthorpe, Mundare, Sexsmith, St. Paul and Wabamum.

According to administration staff from the Town of Bashaw, council there passed a motion at its Jan. 18 meeting for a community improvement and tax incentive, which can be initiated following the year construction is completed.

The incentive states that there will be no taxes levied on buildings or lands the first year after construction is completed. The second year, 50 per cent of the bill will be levied, and the third year 66 per cent of the assessed taxes will be charged.

The fourth year and every year following, regular municipal taxes will be charged.

Melodie Stol, the mayor of Blackfalds, said tax incentives are not used in that municipality.

“It hasn’t been an issue here. We are guided by the Municipal Government Act (MGA) and work collectively with CAEP (Central Alberta Economic Partnership).

Stol believes communities within the central Alberta region need to work together to encourage business.

“We try to take a holistic approach. A new business in one community can have a positive chain reaction for the whole central Alberta Region.

Stol said she can understand council’s decision to eliminate the tax incentives.

“I know how hard it can be to make ends meet in the face of rising costs. And no one makes a decision like that flippantly. They (council) have every right to act on the decision they believe is best for the whole community.”

Mike Deising, communications spokesman with Alberta International and Intergovernmental Relations, said under the regulations of the New West Trade Partnership Agreement (NWPTA) municipalities can offer tax incentives provided certain conditions are followed and it is within the guidelines of the MGA.

“They can offer the incentives as long as the tax policy does not discriminate against a particular business within the industry (that is being offered the tax incentives).”

Jerry Ward, public affairs officer with Alberta Municipal Affairs, said section 347 of the MGA states if a council considers it equitable to do so, it may cancel or reduce tax arrears, cancel or refund all or part of a tax, defer the collection of a tax or phase in a tax increase or decrease resulting from the preparation of any new assessment.

“It has to be done on a year-to-year basis and we always encourage them (councils) to follow the advice of their own legal counsel,” he said.

Olsen said the findings of the businesses regarding tax incentives were presented to council April 6 and the matter will be discussed at the April 13 council meeting.

“We’re hoping they will be open to listen to us and change their mind,” he said.