Additional Rail Classes
Res #: 37-01M
Responses Received: No
Departments: Saskatchewan Assessment Management Agency
WHEREAS, a rail line that handles less than one-half million tonnes per year is classed as a Class 5 Railway, and is assessed at a Fair Market Value of $23,000 per mile; and
WHEREAS, there are new short line operations being started that do less than one-half million tonnes per year;
THEREFORE BE IT RESOLVED, that additional rail classes be established for tonnage’s between zero and one-half million, where zero tonnage would result in a Fair Market Value Assessment equal to salvage value.
Response from Chief Executive Officer, Murray Cooney
The current rating system for railway roadway sets out five classes of railway based on the net tonnage for the railway subdivision. Class five is the lowest class. To qualify for a class five rating, the average net tonnage of the subdivision must be between 0 and 500,000 net tons for the three year period 1995 to 1997.
Salvage value is the current basis for the class five rate. The current rate of $23,000 per mile reflects the salvage value of the railway lines as of June 30, 1998, which is the same base date used to assess all other property in the province.
All properties will once again be revaluated in 2005, and the base date will be updated at that time. If salvage values are lower on the new base date, that will be reflected in the rate applied. Such was the case when the class five rate was lowered from $31,500 to $23,00 per mile for the 2001 revaluation.