Tax Revenue Sharing Agreement
When was it signed?
April 26, 2010
What is it?
The Tax Revenue Sharing Agreement allows our municipalities to work together on future non-residential developments and share tax revenues (70/30 split) on projects valued at over $50 million in the pre-determined tax share area. Through this partnership, our communities take a true regional collaboration approach to planning, which in turn has provided our region with a competitive advantage over other municipalities.
This agreement was provincially recognized as the first of its kind; and as a result, the Town of Whitecourt and Woodlands County received the Award of Municipal Excellence. The agreement has become a benchmark throughout the province for intermunicipal collaboration.
What are the benefits?
The Tax Revenue Sharing Agreement is more than a monetary exchange between municipalities; this agreement is a representation of the relationship between the Town and the County and has allowed our communities to “plan without borders.” The agreement recognizes the unique services each municipality provides to residents, regardless of where people choose to live.
Through this partnership, we:
• work together (and do not compete with each other) to attract any and all types of businesses and locate them where they best belonged (regardless if they were in the Town or the County);
• provide investors more options and flexibility for development on an equitable basis;
• have deferred the annexation of land or trying to make sites available that didn’t necessary fit with Whitecourt’s existing development.
How are contributions calculated?
The transfer of funds recognizes that both the Town and County provide services, facilities and other things that are necessary and desirable to maintain safe and viable communities; and to accomplish this it would be fair and equitable that each municipality share with the other some of the tax revenues collected. Annually, both municipalities share tax revenues on qualifying projects based on a 70/30 split.
For 2018, the following funds were transferred:
Whitecourt to Woodlands County $ 85,656
Woodlands County to Whitecourt $114,864
Net Benefit to Whitecourt $ 29,238
Want more detailed information on the Tax Revenue Sharing Agreement?