The Town of Bonnyville Commercial Tax Incentive Program is designed to stimulate new commercial construction and commercial renovation within the Town limits.

The program is intended to provide tax incentives on the improved value of the land in question. The program provides tax relief on the municipal portion of the commercial property tax in the amounts of 100% in year 1, 100% in year 2, 100% in year 3, 75% in year 4 and 50% in year 5.

For example, the current non-residential tax value of a hypothetical empty commercial property is $1,500 per year. A developer then builds a $800,000 building on the site: the normal taxes on a site like this would be approximately $12,434/year.

The tax on the property would be:

• Year 1: $1,500.
• Year 2: $1,500.
• Year 3: $1,500.
• Year 4: $3,787.
• Year 5: $6,075.

The Commercial Tax incentive program also applies to renovated properties. However, most renovated buildings would have a higher starting point. For example, if the property value of the subject business is $500,000 and the renovations increase the value of the property, then taxes would be based on the initial value for Years 1-3 and a 75% and 50% reduction on the improved value in year 4 and 5. Renovations need to be a minimum of $25,000 to qualify.

January 4, 2024

There’s a new Commercial Incentive Program being offered by the Town of Bonnyville that will provide tax incentives for some non-residential property owners who qualify if they construct new buildings or renovate existing ones.

The program is structured to provide qualifying properties with a tax reduction on increased assessment values for new or renovated construction, provided the increase in improvement value on the property is at least $25,000.  The program provides 100% tax forgiveness on the additional value for 3 years, a further 75% reduction for year 4 and a 25% reduction in the 5^th and final year.

For example, if a non-residential property owner was to build on an empty piece of land, they would pay taxes only on the land value, and nothing on the building value, for the first 3 years. In year 4, they would pay taxes on the land, and only 25% of the building value and in the 5^th and final year they would pay taxes on the land and 50% of the building value.

“The Town has some exciting opportunities ahead of us with proposed developments and local businesses that want to expand,” detailed Town of Bonnyville Mayor Elisa Brosseau. “This program positions the Town as the leading destination in the Lakeland region for business. We already have the lowest non-residential taxes in the region and this aggressive incentive program positions the Town as the preferred destination for existing businesses and entrepreneurs to start and grow their business.”

For specific program information visit: town.bonnyville.ab.ca/commercial-tax-incentive-program/ or contact

Mark Laver

Economic Development Officer

780.826.3496

mlaver@town.bonnyville.ab.ca