Sub Classes – Commercial & Industrial Properties

Res #: 23-10M
Number: 23
Year: 2010
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Ministry of Municipal Affairs

WHEREAS most rural municipalities have a variety of Commercial and Industrial properties;

WHEREAS all these properties are lumped into one Assessment class; and

WHEREAS there are some commercial/industrial properties which are harder on the road system and require a higher amount of maintenance;

BE IT RESOLVED that the Provincial Government be lobbied to create subclasses within the Commercial and Industrial properties within the rural municipalities.

Response from Honourable Darryl Hickie, Minister of Municipal Affairs:

  • The legislation currently recognizes three types of property classes for local tax policy purposes: agricultural, residential, and commercial/industrial.
  • RMs are asking to have authority to establish subclasses within the commercial/industrial property class.
  • Most commercial and industrial properties already pay higher property taxes due to the use of local tax tools. The sector has requested government consider placing limits on these tax tools.
  • In previous consultations with the rural commercial/industrial sector, the sector indicated its opposition to RMs being able to designate subclasses due to the potential for being targeted for large property tax increases. Industry feels municipalities are already using existing tax tools in this way. Industry strongly opposes any changes that would expand the subclass authority. Providing authority to create subclasses could lead to decreased economic development.