Property Tax Discounts
Res #: 3-08M
Responses Received: No
Departments: Saskatchewan Ministry of Municipal Affairs
Whereas the Provincial Government has implemented legislation which requires municipalities to have declining discounts each month after the notice of levy is sent; and
Whereas many municipalities mail their notices either in July or August to allow for the early collection of taxes which assists the municipality and the school division with their cash flow; and
Whereas many municipalities offer the same discount for more than one consecutive month; and
Whereas under current legislation if a municipality mails their tax notices prior to September 1st, they will be required to offer a greater discount for each month prior; and
Whereas offering an additional discount will require a greater allowance for discounts expense in municipal budgets; and
Whereas this will require the municipality to raise their mill rate accordingly to make the increased discounts revenue neutral to the RM;
Be It Resolved that SARM lobby the Provincial Government to amend the legislation to give municipal councils the authority to have a discount rate applied equally for more than one consecutive month.
Response from Honourable Bill Hutchinson, Minister of Municipal Affairs:
· The Government of Saskatchewan agrees municipal councils should have the authority requested in the resolution.
· Therefore, effective January 1, 2009, section 47 of The Municipalities Regulations is revised to give municipal councils authority to have a discount rate applied equally for more than one consecutive month.