Fuel Tax Exemption

Res #: 13-07A
Number: 13
Year: 2007
Midterm: No
Expired: Yes
Responses Received: No
Departments: Saskatchewan Finance

Resolution No. 13-07A (as amended)
Fuel Tax Exemption

WHEREAS, fuel used in municipal equipment is used to construct and maintain municipal roads for use by all the public;

THEREFORE BE IT RESOLVED, that the Provincial Government remove or rebate all provincial taxes on fuel purchased, directly or indirectly, by the municipality for municipal purposes.

Response from Honourable Andrew Thomson, Minister of Finance: 

The provincial Fuel Tax has been a tax of general application that provides the resources necessary to finance the program commitments of the Government of Saskatchewan including support to the municipal sector as well as other priority spending areas such as health care and education. 

The current provincial Fuel Tax rate of 15 cents per litre on gasoline and diesel fuel remains the same regardless of the retail price and has not changes since 1993.  

In November of 2006, the Government introduces The Fuel Tax Accountability Act in the Legislature.  The Act will provide that all on-road fuel tax revenue paid by motorist will be spent on Saskatchewan’s highway and transportation system.   

The Province also provides direct funding support to municipalities for infrastructure and various local programs.  For 2007-08, the Province has committed in excess of $233.8 million in direct provincial funding for municipalities.  The represents an increase of approximately $87.9 million from 2006-07, and is the ninth consecutive year where provincial funding to municipalities has increased.  This funding level also provides the largest single year increase in the history of the Revenue Sharing Program.