New businesses may be eligible for tax incentive

By Cal Braid
Taber Times
Local Journalism Initiative Reporter

New businesses will continue to pop up on Taber’s south side along Highway 3. Though the Town doesn’t typically share specifics about incoming businesses, it was granted permission from a number of the incoming commercial occupants.

 The five unit commercial construction by WalMart will soon be home to Edo, Bar Burrito, and Firehouse Subs. The Shoppers complex is already partially operational with Shoppers, Dollarama, and a rental space in building one and No Frills and rental spaces, including drive throughs, in building two.

 Another five unit commercial space on Hwy 3 remains unannounced until permission to share has been granted.

 Meghan Brennan, communications director at the Town, said specific opening dates haven’t been provided yet by the new businesses. 

“Same goes for the potential tax revenue – until the assessments of the buildings are done, we couldn’t even provide that number I’m afraid. It’s very much a cart-before-horse sort of situation,” Brennan said when asked about how much additional revenue the Town could see as a result of the boom.

 Town council approved an investment incentive and residential incentive tax bylaw in 2022 and 2023. That bylaws offer a municipal tax credit to new developments or expanding local businesses. The incentives apply only to municipal taxes and on a tiered scale over five years.

 The incentives offer a 100 per cent exemption on municipal taxes for the first two years, 75 per cent exemption in the third year, 50 per cent in the fourth year and 25 per cent in the fifth year. In the sixth year, all exemptions are completed.

 Council will review applications once a year, at their first monthly council meeting in March. The business requirements include:

-The applicant must have ownership interest in the property, and have no outstanding monies owed to the Town.

-The property needs to be non-residential and within the Town limits.

-For expanding or growing current resident businesses, they must increase their assessed value by 25 per cent to qualify.

 Brennan said the tax incentive bylaw for businesses is a benefit there for the taking. “All businesses that meet the strictures of the bylaw, whether those businesses are existing or new, are eligible to participate.”

 She added, “We can’t speak to any specific businesses. Also, we don’t know any tax implications until if and when businesses take part and council approves those tax breaks, so for new businesses like this, we just legitimately can’t say with any certainty or give any concrete numbers.”

 The incentive could be a huge advantage if tapped into. At an Oct. 28, 2024 regular meeting of council, economic development manager Amy Allred said, “Our new process will see our team contacting everybody who has a development permit from the year before, find out where they are at with their occupancy and if they qualify for this year or can come into the program next year.”

Though the Town will initially incur a loss of municipal taxes from qualifying businesses, the long-term investment into building and expanding is expected to grow the community and the tax base.