Grant in Lieu Payments

Res #: 8-07M
Number: 8
Year: 2007
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Government Relations

Resolution No. 8 – 07M
Grant in Lieu Payments

WHEREAS properties owned by Saskatchewan Property Management Corporation, SaskTel and various other provincial departments/agencies including some Crown corporations pay a grant-in-lieu of taxes; and

WHEREAS there are Crown Corporations such as SaskPower and SaskEnergy that do not pay a grant- in- lieu for improvements even though they impact the road system and other infrastructure in the same manner as taxpayers;

BE IT RESOLVED that SARM lobby the Provincial government to pass legislation to ensure that all Crown Corporations and government departments pay a grant-in-lieu of taxes equivalent to what the property tax would be.

Ministry of Municipal Affairs RESPONSE

Crown Corporations

·         All provincial Crown corporations pay a grant-in-lieu (GIL) of property tax to municipalities.  These payments are either based on the assessed values and tax rates of their properties or, in the case of SaskPower, SaskEnergy and TransGas, on the Crown utility revenue generated within the municipality.  The linear assets of Crown corporations (i.e. telephone lines, gas lines and power lines) are exempt from taxation in Saskatchewan and no GIL is paid on these assets.
·         It is acknowledged that the exemption of SaskEnergy’s and TransGas’ pipelines is inconsistent with the treatment of private sector oil and gas lines that are subject to property tax.

Grants-in-Lieu Program

·         The provincial Grants-in-Lieu (GIL) Program pays municipalities, school divisions and library boards for provincial properties (excluding health, education and museum properties) that are owned or operated by the Ministry of Government Services (formerly the Department of Saskatchewan Property Management) as if they were private property owners.  
·         The GIL Program payment is based on the municipality’s property tax notice for the previous year.  Currently there are 140 municipalities eligible for the GIL payments, with over 90% going to the cities. 
·         Examples of properties for which GIL Program payments are made are the Legislative Building, the provincial lab and the Regina Correctional Centre. Examples of properties excluded from the GIL Program are SIAST, health facilities, the universities, the Royal Saskatchewan Museum and Western Development Museum properties.   Some other exclusions exist for property owned by other provincial departments related to specific property types (e.g. parks, wastelands, environmental reserves and Crown lands).