Lacombe County rejects business tax break request

A Lacombe County business that is still putting down roots will not get a hoped-for tax break.

Bizisul Inc. manufactures sulphur-based fertilizer for agricultural producers. The manufacturing plant located in an industrial park southeast of Blackfalds can produce 120,000 tonnes of fertilizer a year.

Bizisul president and CEO Abu Bizimana wrote to the county earlier this month asking for a break on a portion of its $101,313 2024 tax bill and the entire 2025 bill. The company has paid about $59,100 to cover its taxes for the first seven months of this year. About $42,200 remains owing.

The company, which was spun off a trucking company, Bizi Transport Inc., saw its tax bill increase from $20,000 a year when it branched off into the sulphur fertilizer business and opened a manufacturing facility last October. About 20 people are employed there.

“This increase has put a serious strain on our cash flow during the time that we are starting operation,” Bizimana told the county in his request.

To establish its reputation and customer base, the company must invest in marketing, production and quality control. The company is also dealing with the costs of starting up the business, including construction, equipment and staff training.

“We are confident that we will generate good revenues in the coming years, but to get there, we need help from the county to survive this critical phase,” says his letter.

County corporate services director Michael Minchin told council while the five-fold tax increase had come as a “bit of a shock” for the fledgling company, the county does not offer tax breaks.

“Council’s history has been not to grant these,” said Minchin, adding if council granted a tax exemption to BiziSul other companies would soon come calling for a similar deal.

The county has been approached a number of times in recent years, especially by oil and gas companies, seeking tax relief. Council has always turned them down, he said.

Coun. Allan Wilson said he would hate to see a business look elsewhere because of the tax situation and wondered if there was a “softer approach” that could be taken.

“Certainly there is a softer approach,” said county manager Tim Timmons. “But if you do it for one you must look at others.”

Coun. Brenda Knight asked if BiziSul could take advantage of the county’s tax instalment payment plan, which helps companies and businesses avoid a big one-time tax hit by spreading payments out over the year.

Minchin said the company would be eligible for the program when it paid off its taxes to the end of August.