HomeMy Public PortalAbout7.4.40 Business Incentive PolicyCity of Melfort Policy Manual
POLICY TITLE:
POLICY NUMBER:
EFFECTIVE DATE:
Business Incentive
Policy
7.4.40
January 1, 2005
ORIGIN:
ADOPTED BY COUNCIL ON:
DATE AMENDED:
Planning & Development
February 14, 2005
February 14, 2005
December 13, 2010
December 14, 2015
NEW EFFECTIVE DATE:
January 1, 2016
Existing Businesses Expanding and New Business Incentive Policy
1.0 PURPOSE
1.1 To promote economic development by stimulating commercial
development in the City of Melfort.
2.0 GENERAL POLICY
2.1 The policy will be evaluated annually.
2.2 This policy is established under the authority of Section 262(4) of The
Cities Act and applies to Municipal Tax and School Tax.
3.0 DEFINITIONS
3.1 Definition of an existing business:
• A business that currently has been licensed by the City of Melfort for a
minimum period of one year.
• A business subject to commercial taxation, thus home based
businesses and businesses subject to grants in lieu are excluded.
3.2 Definition of a new business:
• Any business that does not hold a valid City of Melfort business
license, and has not for at least one year's time.
• Any business that is subject to commercial taxation. Home based
businesses and businesses subject to grants in lieu are excluded.
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4.0 INCENTIVE
4.1 Existing Businesses
Any existing business will qualify for the following tax exemptions:
• The tax exemption will be applied to any increased assessed value,
(improvement), of an existing building due to new construction.
• The exemption will also be applied to the assessed value of any
expansion or new construction on bare land.
*The exemption does not apply to the assessment of the land.
The exemption for an expanding business will be applied as follows:
• 100% exempt in year one
• 100% exempt in year two
• 100% exempt in year three
■ 100% exempt in year four
■ Full taxation in year five
4.2 New Businesses
Any new business will qualify for the following tax exemptions:
• The tax exemption will be applied to any increased assessed value,
(improvement), of an existing building due to new construction.
• The exemption will also be applied to the assessed value of any
expansion or new construction on bare land.
* The exemption does not apply to the assessment of any land.
The exemption for a new business will be applied as follows:
• 100% exempt in year one
• 100% exempt in year two
• 100% exempt in year three
• Full taxation in year four
In all cases, the tax exemption will take effect once the expansion or new construction is
assessed and taxable. The new improvements will be assessed and become taxable
on January 1st of the year following the issuance of the building permit, with the
exception of permits issued after August 31st. Permits issued after August 31st of any
given year shall be assessed and become taxable as though the permit was issued in
the following year.
* Council reserves the right to approve each incentive package
individually and to customize incentives to any specific project.
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City of Melfort
Application To Access Expanding/New Business Incentive Policy
Any business that wishes to access the Expanding/New Business Incentive Policy will be
required to complete the following Application for Expanding/New Business Incentive. This will
outline the nature of the expansion or new construction.
Once the application is received by the Community Development Manager or the Department of
Community Services, should the scope of work fall within the framework of the Expanding/New
Business Incentive Policy, the Director of Community Services will review the application.
Should the request be approved, the Director of Community Services shall provide a letter to the
business, indicating that the increased assessment, caused by the project, will be granted
exemptions based on the appropriate policy.
Prior to any construction, all necessary provincial and municipal permits (i.e. development
permit, building permit) will be required.
Once a building permit is obtained, the City of Melfort Building Official will provide a copy to the
Finance Department so it can be brought to the attention of the City's assessment agency.
The exemption will take effect once the expansion or new construction is assessed and taxable.
The new improvements will be assessed and become taxable on January 1st of the year
following the issuance of the building permit, with the exception of permits issued after August
31st. For permits issued after August 31st of any given year, they shall be assessed and
become taxable as though the permit was issued in the following year.
***PLEASE PRINT***
Business Name:
Business Owner:
Mailing Address:
Phone Number: Fax Number:
E-mail Address:
Business License Number: Building Permit Number:
Location of Construction/Business:
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Type of Construction Activity:
❑ New Building
❑ Addition to Existing Building
Estimated Construction Cost:
Start Date: Completion Date:
Description of Business:
Estimated New Jobs To Be Created:
Construction Jobs:
Full Time Jobs:
Part Time Jobs:
Please check which incentive you are applying for:
❑ Expanding Business Incentive Policy
❑ New Business Incentive Policy
If any of the above information needs to be treated as confidential, please indicate reasons:
Declaration of Applicant
of the
(Name of Applicant — Please Print) (Municipality)
in the Province of Saskatchewan, solemnly declare that all the above statements contained
within the Application are true, and I make this solemn declaration conscientiously believing it to
be true, knowing that it is the same force and effect as if made under oath, and by virtue of "The
Canada Evidence Act".
Dated: Signature:
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For Office Use Only
Date Application Received:
Attachments included (i.e. business plan, letter about business, letters of support, etc.):
Approved: ❑ Comments:
Rejected or ❑ Reasons specified:
Delayed:
Referred to [ 1 Reasons specified:
Community
Services
Committee:
Date Application Finalized:
Notification will be forwarded to the entrepreneur on the status of his/her application.
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