Recreation Tax Class
Res #: 20-10M
Responses Received: No
Departments: Saskatchewan Ministry of Municipal Affairs
WHEREAS having recreational property lumped into the commercial property class is an unfair property classification; and
WHEREAS recreational properties struggle to make ends meet and commercial properties are taxed at 100% of assessed value;
BE IT RESOLVED that The Municipalities Regulations be amended to create a recreation tax class;
FURTHER BE IT RESOLVED that this new tax class be given a percentage of value of 25%.
Previously Passed Resolutions
BE IT RESOLVED that we request that sub-section (i) be added to Section 40 of The Municipal Regulations, which deals with the percentage of value, and call sub-section (i) “recreation″ and set a percentage of value of 20%, hence breaking recreation out of the commercial class and therefore no longer taxed at 100%.
Response from Honourable Darryl Hickie, Minister of Municipal Affairs:
- A variety of properties could be defined as recreational property. These could include movie or live theatres, golf courses, swimming pools, health clubs, gyms, curling and hockey rinks, ball fields, etc. All of these properties and others could receive a property tax break if a recreational property class was created and given a lower percentage of value. However, there would be a property tax shift onto all other ratepayers.
- Private businesses run recreational properties as commercial enterprises with the goal of making a profit from their operations. Commercial enterprises experience competition from a variety of sources. Singling out one form of commercial property to receive a benefit from property taxation would set a precedent and lead to pressures from others for similar special treatment, thus diminishing equity, fairness and transparency.
- While some recreational property owners may be facing pressure due to economic conditions, it would be difficult for government to justify why a successful enterprise should receive a property tax benefit.
- Municipalities have options under The Municipalities Act to exempt or partially exempt property from municipal taxation in a given year.
- The municipality may apply local tax tools such as mill rate factors to lower property tax. However, the mill rate factors apply to the property class as a whole and not to individual properties.
- A property owner who feels land or improvements have been assessed incorrectly can appeal the assessment.