Assessment of Non-profit Recreational Properties

Res #: 15-13M
Number: 15
Year: 2013
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Government Relations

WHEREAS having non-profit recreational properties included in the commercial property class is an unfair property classification; and

WHEREAS there is a difference between a non-profit or charitable organization recreational property and a publicly owned for profit recreational property; and

WHEREAS non-profit or charitable organization recreational properties struggle to make ends meet and commercial properties are taxed at 100% of assessed value; and

WHEREAS “Designated Recreational Property” have their own property class in Manitoba, and this class is taxed based on 10% of assessment;

BE IT RESOLVED that The Municipalities Regulations be amended to create a non-profit recreational property class and that the percentage of value be set at 10%.

Response from Jim Reiter, Minister of Government Relations and Minister Responsible for First Nations, Metis and Northern Affairs

•    Changes in percentages of value shift property tax from one property class to others.  They do not reduce the total property tax levied.  If the resolution were implemented, increases would result for the agricultural, residential and commercial/industrial property classes.  The rationale is unclear for why owners of these classes of property should pay more property tax so owners of recreation properties pay less.

•    The role of the province in property tax policy is to set percentages of value for property classes on a province-wide basis.  Government has made progress in improving consistency in provincial property tax policy.  Creating special property classes for percentage of value purposes for individual types of property would be a step backward and set a precedent for requests for similar special tax treatment for other ratepayers.

•    A property owner who feels land or improvements have been assessed incorrectly can appeal the assessment.  He or she can also approach the municipal council for a tax exemption or abatement under certain circumstances.

Updated response from Ministry of Government Relations dated July 4, 2017