The company repurposing the Aurora Sun greenhouse has requested they move more swiftly to the tax-free status afforded to agricultural facilities in urban centers by provincial regulations.
Bevo Farms has been operating at the huge growing facility in Medicine Hat's northwest for two months, but faces a full-year assessment at the much higher non-residential (commercial-industrial) property classification when taxes are due next month.
That amounts to a $750,000 bill for its municipal portion of property taxes, which Bevo says should be reduced – a request the council will consider next month. The formal request was heard at Thursday's meeting of the council's corporate services committee.
Property taxes are determined by two factors, said managing director Dennis Egert. They are the usage at the beginning of the year, either farm or non-residential class, and the property value at the mid-point of the year.
Farms are assessed and taxed at a substantial discount to commercial operations, and the difference – if allowed by the council – would be picked up by other taxpayers. "Our recommendation is to not offer a full cancellation," said Egert. "But we have considered options that council should deliberate."
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