Resolution No. 5 – 08A
Tax Assessment

WHEREAS under the current assessment system, multiple neighborhoods can exist within the residential and seasonal residential classes; and

WHEREAS under the market related neighborhood system huge boundary shears can exist with adjacent properties; and

WHEREAS municipal councils do not have tax tools to mitigate the inequities of the assessment and corresponding education property tax;

BE IT RESOLVED that municipalities be allowed the option of either the current multiple neighborhood assessment or a single market adjustment factor applied to all properties under that class within the municipality.

Response from the Honourable Bill Hutchinson, Minister of Municipal Affairs

• The options proposed in the resolution would provide muncipalites with a choice as to how properties are assessed.
• The Saskatchewan Assessment Management Agency (SAMA) is an independent agency that operates at arms length from the government.  SAMA is delegated the authority to establish rules and principles used in determining assessment values in accordance with legislation.
• It is anticiapated that SAMA will provide preliminary 2009 assessment values to all municipalities in the spring of 2008.
• At that time, municipalities wil have an opportunity to provide feedback to SAMA regarding the preliminary values. Municipalities should discuss with SAMA whether or not neighbourhoods have been over stratified in assessing properties.  SAMA can further examine neighbourhood stratification in order to ensure that boundaries are not defined too sharply and that areas with their own market adjustment factors are not too small.
• Property owners who do not agree with their assessment have the right to appeal the assessment.
• Local tax tools currently in use in the province would not address this issue since tax tools are based upon property types.  Location is not used as a basis for tax tools.