Non-Residential Property Sub Class

Business Incentives in the Town of Nanton

The Town of Nanton offers several property tax incentives designed to encourage economic growth, stimulate investment, and promote non-residential development. These incentives are particularly focused on new industrial, commercial, and residential developments, aiming to boost local employment, improve the town’s infrastructure, and revitalize specific areas.  

1. Non-Residential Tax Incentive Bylaw (Bylaw No. 1386/24)

• Purpose: The primary goal of this bylaw is to provide property tax incentives to encourage the construction, expansion, or renovation of non-residential properties. By reducing the tax burden on new developments, Nanton hopes to spur economic activity and attract new businesses.
• Eligibility: Businesses that construct new non-residential buildings or undertake significant renovations (with a minimum assessed value increase of $25,000) are eligible for tax exemptions. The project must begin after the adoption of the bylaw and must comply with all local development regulations.
• Exemptions: The exemption applies only to municipal taxes, excluding provincial school and senior housing requisitions. The length and percentage of tax exemptions depend on the assessed value of the property:
  • $25,000 to $75,000: 1 year of exemption
  • $75,001 to $250,000: 1 year of 100% exemption
  • $250,001 to $1,000,000: 2 years (100% in year 1, 50% in year 2)
  • $1,000,001 to $10,000,000: 3 years (100% in year 1, 75% in year 2, 50% in year 3)
  • Over $10,000,000: 4 years (100% in year 1, 75% in year 2, 50% in year 3, 25% in year 4)
• Ineligible Properties: Properties assessed as linear property are not eligible for exemptions under this program.

2. Property Assessment Subclass Bylaw (Bylaw No. 1400/24)

• Purpose: This bylaw divides non-residential properties into sub-classes for tax purposes. The goal is to incentivize the development of specific types of properties and reduce vacancies in commercial areas.
• Sub-Classes:
  • Vacant Non-Residential Property Sub-Class: Properties that are vacant for an extended period within the Mixed-Use Downtown (M-DWT) Land Use District are subject to higher taxes to encourage their development. A portion of this tax revenue is directed into public realm improvements.
  • Small Business Property Sub-Class: Small businesses with fewer than 10 full-time employees are given a tax break (tax rate between 75% to 100% of the regular non-residential rate) to help them thrive in Nanton.
  • Multi-Unit Dwelling Property Sub-Class: Properties with three or more rental units in the R-GEN Land Use District receive a tax reduction (tax rate between 50% to 100% of residential rates) to incentivize more affordable housing options in the area.
• Incentives: These sub-classes provide targeted incentives for small businesses, encourage property owners to avoid leaving commercial spaces vacant, and stimulate multi-unit residential development.

3. Property Tax Variance Objectives (Policy No. 13-303-24/11/04)

• Objective: The property tax variance policy aligns with the broader goals of encouraging investment in non-residential properties and revitalizing Nanton’s commercial core. The policy gives Council the discretion to adjust tax rates for specific property subclasses in the town, ensuring that incentives are aligned with the town's economic goals.
• Fiscal Transparency: The town regularly reviews the fiscal impacts of these incentives and adjusts the rates and criteria as necessary to maximize the benefits for the community.
• Annual Review: Council will review the policy and its outcomes annually to assess whether the incentives are achieving the desired results, such as new business growth and the revitalization of vacant properties.

These incentives are designed not only to reduce the immediate financial burden on developers and property owners but also to create a sustainable business environment that benefits the entire community. By offering targeted tax exemptions and subclasses, the Town of Nanton is building a framework for future growth and prosperity.

For more details or to apply, please contact the Town Office at 403-646-2029 or email develop@nanton.ca