Three new industrial and commercial enterprises in the RM of Corman Park received approval for three-year tax exemptions under the municipality’s tax exemption policy.
The three businesses qualified for the incentives after meeting specific criteria, including investments of over $500,000 and creation of five or more new full-time job positions.
Corman Park council voted at a meeting on Monday, October 25 to approve the tax exemptions for Northern Nutrients in East Floral Industrial Park; Southern Drop Irrigation Ltd in BizHub Industrial Park; and Ryan and Darren Holdings in East Cory Light Industrial Park.
The tax breaks are based on a sliding scale over three years. The first year, which includes the year in which construction begins, provides for a 75% exemption. The exemption drops to 50% in the second year and 25% in the third year.
The purpose of the tax exemption policy is to foster industrial and commercial economic development. Similar tax exemption policies are in place in Warman, Martensville, and the Saskatoon Regional Economic Development Authority (SREDA).
Corman Park Reeve Judy Harwood said economic incentive policies are an important part of the recipe for attracting new businesses.
“I don’t think all these municipalities would have these policies if they didn’t see positive results,” said Harwood. “It’s another tool in our toolbox to bring business in. Businesses create jobs and investment, and that’s good for everyone in the long run.”
She noted the first year’s tax exemption of 75% is aimed at helping the new business at a critical period.
“They’re just getting started and putting the building together in the first year, so realistically, there is little or no return for the business in that initial year,” she said. “The second and third year the incentives decline as the business becomes more established.”
At the October 25 meeting, Corman Park councillors amended the tax exemption policy to ensure that qualifying businesses don’t miss out on the opportunity.
Instead of having to submit a tax exemption application prior to obtaining a building permit, applicants will now be allowed to apply by September 15 in the year prior to assessment. The amendment will assist applicants to ensure they don’t miss the deadline.