Grain Storage Exemption

Res #: 26-10M
Number: 26
Year: 2010
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Ministry of Municipal Affairs

WHEREAS in the last several years many of the wooden grain elevators in Saskatchewan have been bought by local farmers for agriculture grain storage only;

WHEREAS in The Municipalities Act it reads that grain storage is exempt from taxation; and

WHEREAS most grain elevators are located in urban municipalities where the grain storage exemption does not apply;

BE IT RESOLVED that SARM lobby the Provincial Government to extend grain storage exemption to include grain elevators owned by farmers in both urban and rural municipalities.

Response from Honourable Darryl Hickie, Minister of Municipal Affairs:

  • The Municipalities Act section 293(2)(c) and (d) and section 294(2) states rural municipalities shall exempt producer purchased elevators providing the elevator used for grain storage space is used exclusively in connection with the agricultural operation that is owned or operated by the owner or lessee of the improvement.
  • Section 198 of The Municipalities Act gives urban municipalities authority to enter into a fixed assessment agreement, by bylaw, with the owner of any land in the municipality that is used exclusively for farming purposes.
  • In order for the urban council to consider the exemption, the elevator site must fit the criteria listed in section 198(1)(a)(i), (ii) and (iii) must also be deemed to be used exclusively for farming purposes, such as grain storage.
  • The fixed assessment agreement may provide for a fixed value to be placed on the land and any improvements on the land for assessment purposes; or may provide a fixed rate of taxation for all purposes or any specified purposes.
  • The agreement may exempt the elevator from taxation. These agreements remain in force for a period not exceeding five years, as specified in the agreement and may be renewed from time to time for periods not exceeding five years each.
  • Providing the elevator meets necessary criteria, if the municipal council does not promptly enter into an agreement pursuant to section 198 (1), the owner of the elevator may petition the Saskatchewan Municipal Board to adjudicate in the matter.