This is the exact embedded text of the captured official document.
Snapshot af02c8d9feb3 · verified 2026-06-08 ·
original document ·
archived snapshot ·
unofficial consolidation, the official version is held by the municipal clerk.
Page 1 of 11
VULCAN COUNTY
Vulcan - Alberta
BYLAW 2022-031
Being a bylaw of Vulcan County in the Province of
Alberta to incentivize new development of large-scale
linear property projects with long-term stability and
predictable tax incentives.
WHEREAS the Municipal Government Act, RSA 2000, c.M-26 pursuant to
section 364.2, authorizes municipalities to allow full or partial exemption from
taxation for non-residential properties.
AND WHEREAS Vulcan County is committed to promoting investment
opportunities;
AND WHEREAS Vulcan County considers it desirable to encourage new
development of large-scale linear properties for the general benefit of the
municipality;
AND WHEREAS Council advertised its intention to consider the provision of
this Bylaw pursuant to the requirements of the Municipal Government Act,
R.S.A. 2000 as amended or repealed and replaced from time to time;
NOW THEREFORE the Council of Vulcan County, in the Province of Alberta,
duly assembled enacts as follows:
1. This bylaw may be called the "Linear Tax Stability Bylaw".
2. Definitions
a) "Applicant" means a person who applies for a Tax Stability Agreement;
b) "Application Fee" means the fee established by this Bylaw to be paid at the
time an application is submitted pursuant to this Bylaw;
c) "Assessed Person" means an assessed person as defined under section
284(1) of the Municipal Government Act;
d) "CAO" means the Chief Administrative Officer of the County, or delegate;
e) "Commenced" means the act of proceeding with any physical structures
that require approval under Vulcan County's Land Use Bylaw;
Page 2 of 11
f) "Commercial Operation Date" means the New Project and/or an
Expansion Project are operational as determined in accordance with MRAT
and the Municipal Government Act;
g) "Complete Application" means an application submitted pursuant to this
Bylaw that includes the Application Fee, the application form, any information
and documents set out on the application form and any additional application
requirements for the Tax Stability Agreement under this Bylaw, including any
additional documentation requested by the County to verify the accuracy of
the information provided;
h) "County" means the municipal corporation of Vulcan County, a municipality
established under the authority of the Municipal Government Act;
i) "Council" means the Council of Vulcan County;
j) "Decision" means the decision to grant a Tax Stability Agreement, to reject
the application, or to cancel the Tax Stability Agreement;
k) "Eligible Capital Costs" means the lower of the actual total capital costs
incurred to construct the New Project, or the estimated cost to the Assessed
Person to construct the New Project at the time of Final Investment Decision
as outlined in the Complete Application, and will include any new
expenditures on labour, engineering, materials or other costs associated with
the construction, but will not include the costs of any improvements or
machinery and equipment that existed on the land before construction
commenced or the land itself, or other non-capital costs such as
legal/regulatory/permitting fees;
l) "Exemption" means the portion of taxes on non-residential property that
have been determined to be exempt in accordance with this Bylaw, and
which are computed separately under this Bylaw for non-residential property;
m) "Expansion Project" means development that adds to the existing facilities
physical space or associated infrastructure, but does not include the
replacement and upgrading of the components of an existing facility;
n) "Final Investment Decision" means the final approval and sanction by the
owners of a New Project;
o) "Large-Scale" refers to the threshold value of Eligible Capital Costs as
outlined in the eligibility criteria in section 5 of this Bylaw.
p) "Linear" means the type of property falling within the assessment class
specified in section 284(k) of the Municipal Government Act;
q) "Municipal Government Act" means the Municipal Government Act, RSA
2000, c M-26;
Page 3 of 11
r) "MRAT" means the Matters Relating to Assessment and Taxation Regulation,
2018, AR 203/2017;
s) "New Project" means a new construction of a large-scale Linear Project on
a Property;
t) "Non-Residential" means the type of property falling within the
assessment class specified in section 297(1)(b) of the Municipal Government
Act;
u) "Property" means the property or properties on which an Applicant is
applying to qualify for a Tax Stability Agreement;
v) "Qualifying Property" means a Property which meets the criteria under this
Bylaw for a Tax Stability Agreement;
w) "Supplementary Assessment" means a supplementary assessment as set
out in Part 9, Division 4 of the Municipal Government Act;
x) "Tax Reduction" means an exemption from taxation for non-residential
property as provided for in Part 10, Division 2 of the Act but shall not include
an exemption from non-residential property taxes on land. For purposes of
clarity, the exemption from taxation applies only to municipal taxes imposed
by Vulcan County under Part 10, Division 2 of the Act, excluding any
municipal taxes on land, and does not apply to any Provincial or local
requisitions.
y) "Tax Stability Agreement" means a written agreement setting out the
terms and conditions for a Tax Incentive for the Qualifying Property, entered
into between the applicant and Vulcan County following approval of an
application made pursuant to this Bylaw.
3. Interpretation
The following rules apply to interpretation of this Bylaw:
a) headings, titles, margin notes, and preambles in this Bylaw are for ease of
reference only;
b) gender-specific words, phrases, and references are intended to be gender-
neutral, and the singular includes the plural as the context requires;
c) every provision of this Bylaw is independent of all other provisions and if any
provision of this Bylaw is declared invalid by a Court, all other provisions of
this Bylaw remain valid and enforceable; and
d) references to bylaws and enactments in this Bylaw include amendments and
replacement bylaws and enactments, and regulations and orders thereunder.
Page 4 of 11
PART II - AUTHORITY AND CRITERIA FOR EXEMPTION
4. Authority to Grant Exemption
The Chief Administrative Officer has the authority to determine whether an
Exemption will be granted in accordance with the terms and conditions of this
Bylaw.
5. Criteria for Exemption
a) To be eligible for an Exemption through a Tax Stability Agreement, the
following eligibility criteria must be met:
(i)
be a New Project and/or an Expansion Project with Eligible Capital
Costs of more than $100,000,000 Canadian dollars;
(ii)
the Non-Residential Linear Property must have an expected
lifespan of over 15 years;
(iii)
the Non-Residential Linear Property must not be subject to any
other tax reduction or tax incentive agreement granted pursuant
to any Vulcan County bylaw; and
(iv)
be commenced subsequent to this bylaw coming into force.
b) Requirements for Qualifying Property:
(i)
be physically located within Vulcan County;
(ii)
obtain all applicable necessary development approvals from the
County;
(iii)
obtain all applicable required approvals from provincial or federal
governments or regulators with respect to the non-residential
property; and
(iv)
not have development compliance issues, be in violation of a
development agreement, or in violation of the Safety Code
Act at any time during the taxation years for which the
Exemption applies.
c) Requirements for Applicant:
(i)
Applicant is the Assessed Person or authorized agent for the
Assessed Person;
(ii)
Applicant must submit a Complete Application in accordance with
the terms of this Bylaw;
Page 5 of 11
(iii)
Assessed Person must not be in arrears or have amounts owing
with regards to property tax, utilities, or other fees owed to the
County at any time during the taxation years for which the
Exemption applies;
(iv)
Assessed Person must not be in bankruptcy or receivership;
(v)
Assessed Person must be in compliance with terms and
conditions of any grant or other financial assistance received
from the County, irrespective of the New Project, or the
Qualifying Property;
(vi)
Assessed Person and their agent must not furnish false
information within an Application, or furnish false information or
misrepresent any fact or circumstance to the County whether as
part of the application process or during the term of the Tax
Stability Agreement; and
(vii)
Assessed Person and their agent must meet all requirements
under this Bylaw and the Municipal Government Act.
6. Ineligible Projects
New projects that transition operations or relocate development from an
incorporated urban municipality within the boundaries in Vulcan County will not
be eligible for an Exemption.
The Chief Administration Officer may exercise discretion to refuse to have the
County grant an Exemption when:
a) an entity related to the Assessed Person is in bankruptcy, or receivership;
b) the Assessed Person owns any interest in another property that is going
through foreclosure;
c) an entity related to the Assessed Person owns any interest in another
property going through foreclosure;
d) the Property is the subject of some form of litigation;
e) the Assessed Person is involved in litigation with the County; or
f) in the sole discretion of the Chief Administrative Officer, there is any other
reason to believe that the Exemption is not in the public interest.
Page 6 of 11
7. Exemption Effect
An Exemption may have effect for up to:
a) Ten (10) consecutive taxation years
b) No subsequent application for exemption or deferral of taxes will be
accepted for the New Project.
c) Notwithstanding anything in this Bylaw, no exemption will be
permitted to apply in a taxation year that is more than 15 years after
an exemption is approved in accordance with this bylaw.
8. Change of Ownership
a) A change in ownership of the Property will not affect the Exemption
unless the new owner falls within one or more of the terms for
disqualification under section 6 of this Bylaw.
b) To maintain eligibility for the Exemption, the new owner
must assume the obligations that arise under the Tax Stability
Agreement.
PART III - APPLICATION AND DECISION PROCESS
9. Application for Exemption
The application process for an Exemption is as follows:
a) Applicants must submit a Complete Application to the County, and the
Chief Administrative Officer has the discretion to reject applications that
are incomplete, ineligible, or provided after the deadline provided in this
bylaw;
b) Applicants must submit a non-refundable application fee of one thousand
dollars ($1,000) Canadian;
c) No new applications will be received for projects that have already
received Vulcan County development permit approval prior to this Bylaw
coming in to effect, nor for projects commencing after January 1, 2030.
d) A Complete Application must be received before construction of the New
Project and/or Expansion Project has Commenced;
e) Applicants whose applications are returned as incomplete or ineligible
may resubmit an application without payment of a further application fee;
Page 7 of 11
f) notwithstanding the Complete Application requirements, the County may
require any additional information that, in the discretion of the County, is
necessary to complete the application and may require the Applicant's
consent to be given for the County to obtain such additional information;
g) Complete Applications may be considered and approved in accordance
with this Bylaw before construction on the qualifying property is
complete; however, the Exemption will not apply until all construction on
the Qualifying Property is complete, the development is inspected and
approved, and the Commercial Operation Date takes place; and
h) the County will advise Applicants in writing if their application is accepted
for consideration. Applications accepted for consideration will become the
property of the County and may not be returned.
i) the Chief Administrative Officer will receive and consider Complete
Applications within the provisions of this Bylaw and may consult with,
obtain information from, and verify information with other employees or
agents of the County, other governments, government agencies, or
persons.
10. The Chief Administrative Officer will consider each application and:
a) grant the Exemption and enter into a Tax Stability Agreement with the
Applicant; or
b) reject the application and advise the Applicant with written reasons as to
why.
11. The Chief Administrative Officer is authorized to enter into a Tax
Stability Agreement with the Applicant if an Exemption is granted.
12. The Chief Administrative Officer will issue a written Decision to the
Applicant outlining the following information:
a) whether a Property qualifies for the Exemption, and the years to which
the Exemption applies, which must not include any taxation year earlier
than the taxation year in which the Exemption is granted, if applicable;
b) any reason why the Property fails to qualify for the Exemption and
provide the date by which an application for an appeal to Council must be
made;
c) the extent of any exemptions granted on the Property pursuant to the
terms of this Bylaw; and
d) any conditions, the breach of which will result in the loss of the
Exemption and the taxation year or years in which the conditions apply.
Page 8 of 11
13.
In issuing a Decision under subsection (12), and in the Tax Stability
Agreement, the Chief Administrative Officer may set conditions requiring
the Applicant to provide information requested by the County to enable the
County to monitor whether the Property continues to meet the terms of
this Bylaw throughout the period for which the Exemption is granted, or to
ensure that the calculation of the Exemption is accurate, including the
provision by the Applicant of consent for the disclosure of such information
to the Chief Administrative Officer by employees or agents of the County,
other governments, government agencies, or other persons.
14. It will be a deemed condition of all Decisions that section 5 of this Bylaw be
complied with on an ongoing basis.
15. At any time, the Chief Administrative Officer may require the Applicant to
provide any documents as the Chief Administrative Officer may deem
necessary to verify any information contained in the application or to
confirm ongoing compliance with the eligibility criteria of the Exemption.
16. When a condition of the Decision is breached, a Property no longer
qualifies for an exemption under this Bylaw, or information becomes
available that shows that the Property should not qualify for an exemption
under this Bylaw, the Chief Administrative Officer will issue a written
Decision cancelling the exemption, provide an explanation why the
exemption has been cancelled, and what criterion or conditions must be
met in order for the exemption to be reinstated, if applicable. The written
Decision will also provide the date in which an appeal to Council must be
submitted.
PART IV - CALCULATION AND APPLICATION OF THE EXEMPTION
17. An Exemption granted pursuant to this Bylaw will be calculated and applied
in accordance with this section:
a) for up to a maximum of 10 consecutive eligible tax years identified in the
Tax Stability Agreement, the Non-Residential property shall receive a Tax
Reduction, on the incremental increase in the annual property taxes
levied on the non-residential property attributable; whereas, to reduce
the property tax rate on any property, or any portion of a property, to an
effective rate equaling the lessor of:
i.
the effective posted annual municipal tax rates as approved and
adopted by Council; and
ii.
a minimum threshold of 10.00 mills.
b) notwithstanding anything in this section or in any Tax Stability
Agreement, no Tax Reduction under this section shall apply so as to
reduce the applicable property tax rate on any property, or any portion of
a property, below the effective posted annual tax rates or the minimum
threshold of 10.00 mills, whichever is the lessor.
Page 9 of 11
c) For clarification purposes, the exemption from taxation applies only to
municipal taxes imposed by Vulcan County under Part 10, Division 2 of
the Act, excluding any municipal taxes on land, and does not apply to any
Provincial or local requisitions.
18. Commencement of Exemption
The Exemption will begin in effect when:
a) the Commercial Operation Date is reached; and
b) the Applicant has demonstrated that all applicable conditions of the
Decision, the Tax Stability Agreement and requirements under this
Bylaw have been met.
19. Tax Stability Agreement
A Tax Stability Agreement will be required for all granted
Exemptions. The Tax Stability Agreement will include the following:
a) the taxation years to which the Exemption applies, which must not
include any taxation year earlier than the taxation year in which the
Exemption is granted;
b) conditions the breach of which will result in cancellation of the Tax
Stability Agreement and the Exemption, and the taxation year or
years to which the conditions apply;
c) the date which the Exemption will begin in effect, which will be the
Commercial Operation Date;
d) the amount of the Exemption, to be calculated and allocated in
accordance with section 17 of this bylaw; and
e) any other information or conditions provided by the County.
20. Cancellation of Exemption
If at any time after an Exemption is granted, the County determines that:
a) the Applicant or their application did not meet or ceased to meet any
of the criteria in which formed the basis of granting the Exemption; or
b) there was a breach of any condition of the Tax Stability Agreement;
the County may cancel the Exemption for the taxation year or years
in which the criterion was not met or to which the condition
applies.
Page 10 of 11
c) A written Decision to cancel an Exemption must be provided to the
Applicant and must include reasons for the cancellation, identify the
taxation year or years to which the cancellation applies, and provide
the date by which an application for an appeal to Council must be
made.
PART V - APPEAL TO COUNCIL
21. An Applicant may appeal to Council in the following situations:
a) an Application for Exemption is refused or rejected;
b) an Exemption is cancelled for one or more taxation years;
c) a Tax Stability Agreement is cancelled; or
d) content of the Tax Stability Agreement is inconsistent with the Bylaw
or the Municipal Government Act.
22. A request for appeal must be submitted in writing to the Chief Administrative
Officer within 30 days of:
a) written notice being sent to the Applicant that an application has been
refused or rejected;
b) written notice being sent to the Applicant that an Exemption is
cancelled for one or more taxation years;
c) written notice being sent to the Applicant that a Tax Stability
Agreement is cancelled; or
d) execution of a Tax Stability Agreement as the case may be.
23. Council will consider an appeal at:
a) a regularly scheduled meeting of Council; or
b) a special meeting of Council.
24. Remedies available to Council upon conclusion of an appeal are:
a) Council may uphold or revoke a decision of the Chief Administrative
Officer with respect to the outcome of an application or cancellation
of an Exemption or Tax Stability Agreement; or
b) Council can revise or direct the Chief Administrative Officer to revise a
Tax Stability Agreement.
Page 11 of 11
c) In accordance with section 460(7) of the Municipal Government Act,
complaints about a Decision may not be made to the assessment
review board.
25. Severability
If any portion of this Bylaw is declared invalid by a court of competent
jurisdiction, then the invalid portion must be severed and the remainder of
this Bylaw is deemed valid.
26. Enactment
a) This bylaw shall come into effect upon third and final reading thereof.
READ a first time on this 17th day of August, 2022.
READ a second time on this 2nd day of November, 2022.
READ a third time and passed on this 2nd day of November, 2022.
[original signed]
________________________________
Jason Schneider, Reeve
[original signed]
_____________________________
Nels Petersen, CAO