Specific Claim Tax Loss
Rural Municipal Specific Claims Tax Loss Compensation Trust Fund
On May 25, 2000, SARM signed an agreement with the Government of Saskatchewan to administer the Rural Municipal Specific Claims Tax Loss Compensation Trust Fund. The purpose of the fund is to provide tax loss compensation to rural municipalities that lose taxable property from their assessment base due to lands being given reserve status in the settlement of specific land claims.* The trust fund is designed to provide a perpetual return thus enabling rural municipalities to receive some level of tax loss compensation indefinitely.
The trust fund originally received the sum of $2.8 million from the Province of Saskatchewan. In addition, the fund receives tax loss compensation paid by First Nations Bands to rural municipalities. The $2.8 million from the Province relates to a maximum of 300,000 acres of land attaining reserve status. Included in their land claim compensation from the Federal Government, First Nations Bands receive a certain amount of funding for rural municipal tax loss compensation. This funding is based on five times the previous year’s municipal tax and is to be paid to the affected rural municipalities.
Annual payments from the returns on investment are made to rural municipalities, based on sixty or forty per cent (depending on whether the funding provided by the First Nation Band are received by SARM) of the current municipal taxes, less a five per cent administration fee.
* “Specific” land claims are when a First Nation Band received the land they were entitled to under treaty originally, but part of the land was taken fraudulently, or sold but not paid for.
For more information about this fund, or to make a claim, contact Doug Fisher or Catherine Patterson at 306-761-3720, or email@example.com