On November 8, 2021, the Town of Vegreville Council passed Bylaw 08-2021 Small Business Sub-Class Bylaw and Policy FIN-6008 Small Business Sub-Class Policy. With this bylaw and policy the Town of Vegreville is implementing a formal process to provide qualified small businesses with a preferential property tax rate.
According to Policy FIN-6008 the properties eligible for the small business sub-class are those, other than designated industrial properties, that are owned or leased by a business who:
Operate under a valid business licence or have proof of an approved business license exemption from the Town of Vegreville;
Employ fewer than 50 full-time employees within Canada as of November 30 of the preceding tax year; and
Generate active business income from its operations.
On an annual basis the business must complete the online form ANNUAL SMALL BUSINESS DECLARATION and submit it no later than 4:30 PM on the last working day of December each year. If the form is received after the last working day in December each year it will not qualify for the small business tax rate in the subsequent year.
In general, leased premises do not qualify for the small business subclass as they do not generate active business income. In the event the property is leased to a business that would otherwise qualify as a small business, the property may be eligible for the small business sub-class. Under Bylaw 08-2021 and Policy FIN-6008 it is the property owner’s responsibility to provide the Town of Vegreville with an Annual Small Business Declaration from each of the businesses that are leasing their property annually and submit them to the Town Office by the specified time.
For more information, email finance@vegreville.com.