On June 4, 2019, the Government of Alberta introduced Bill 7, the Municipal Government (Property Tax Incentives) Amendment Act, which applies amendments to the taxation provisions of the Municipal Government Act (the “MGA”). Bill 7 was given royal assent and came into force on June 28, 2019.
What Are the Key Changes to the MGA?
The primary effect of Bill 7 is to add a new provision, section 364.2, to the MGA. This section allows municipalities to grant tax exemptions and tax deferrals (collectively, “Incentives”) to non-residential properties, for the purpose of encouraging the development or revitalization of these properties for the general benefit of the municipality. It gives municipalities the discretion to determine how much they wish to reduce or defer taxes for a particular non-residential property, subject only to the requirement that an Incentive last for no more than 15 years. Incentives can, however, be renewed for further terms of 15 years or fewer.
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