Town of Bishop's Falls
Municipal Tax Incentive Policy
Criteria For Eligibility

(Revised April 15, 1997)

This policy is intended to provide a form of tax relief to new businesses establishing a corporate entity for service or product in the initial years of operation. To be eligible for consideration, businesses must be legally established companies and deemed by Council not to be in competition with other established businesses within the Bishop's Falls jurisdictional area. This policy was adopted January 31, 1995, and is subject to annual review of guidelines and criteria. This policy does not apply to businesses established prior to the initial adoption of the policy as it is intended to promote economic development and growth and enhance employment potential in Bishop's Falls. The following guidelines will be used to determine qualifications for tax exemption which is to be calculated based on meeting all criteria of the formula outline.

Article 1 - Ownership / Legal Name Change of Existing Business

New ownership or expansion of any business established in Bishop's Falls must result in new job creation in addition to positions evident at the establishment prior to the change in ownership or expansion.

Article 2 - Formula - Criteria

Investment dollars must be met in accordance with the formula outline. Failure to meet this component will result in ineligibility.

Article 3 - Tax Exemption

Property Tax and Business Tax will be considered for exemption for the qualifying period. Water Rates do not qualify.

Article 4 - Verification of Investment

Confirmation must be received by way of Financial Statements or Letter of Verification from a recognized auditing firm conducting services for the business of direct investment capital for establishment of the business. This investment value will be used to determine the period of exemption in accordance with the formula outline. In-kind labour value, equipment donation, or estimated investment dollar value will not be recognized for the purpose of determining eligibility.

Article 5 - Non-Competitive Business

Non-competitive business is defined as any business not participating in whole or in part in any product, activity, or service of any other business already established within the jurisdictional area.

Article 6 - Formula Outline

Article 7 - Viable Operation

Businesses qualifying for an extended period of exemption under the formula outline who cease operation will be subject to taxation for Property Tax with effect from the date of closure with any agreement for the balance of the qualifying period becoming void.