City launches Residential Tax Exemption Program
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Medicine Hat – Following the approval of Bylaw 4851 at the June 16 City Council meeting, the City of Medicine Hat will officially launch a new Residential Tax Exemption Program on July 2, 2025.
In late 2024, changes to the Municipal Government Act were announced enabling municipalities to have the discretion to offer multiyear property tax exemptions to residential properties to encourage housing construction. With a bylaw that defines the parameters now in place, the City of Medicine Hat is ready to launch a program that will focus on the development of multi-unit residential housing.
The Residential Tax Exemption Program will provide a municipal tax exemption to the increase in municipal property taxes resulting from new construction. The exemption will be calculated by comparing the assessed value of a property before and after development and will be only applied to the municipal portion of the taxes, with no effect on the education portion of taxes that are also collected via property taxes.
This means the municipality will continue to collect the same amount of tax revenue it was receiving prior to the development, ensuring no loss in current municipal tax revenue, while still offering a tax break to developers for a specified number of years.
“The goal is to support smart, strategic growth in our community,” says Selena McLean-Moore, Director of Economic Development. “By providing an incentive for developers to build new housing, especially in priority areas, we’re helping to meet the growing demand for housing while also revitalizing neighbourhoods and supporting local jobs.”
To qualify for the exemption:
- The property must be located within city limits.
- It must be a newly built multi-unit residential building (like a triplex, fourplex, or apartment).
- The builder must have received occupancy approval from the City’s Planning & Development department.
The length and amount of the tax break will vary depending on two factors:
- How many units are included in the project, and
- Where the building is located in the city.
For full program details, including eligibility and how to apply, visit the City's Economic Development Incentives webpage, or contact Medicine Hat Economic Development.
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