Tax Exemptions on Cottages

Res #: 9-02M
Number: 9
Year: 2002
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Government Relations

Resolution 9-02M

WHEREAS, section 331 of The Rural Municipality Act, 1989 does not define the word "dwelling" leaving it unclear as to what it means in terms of assessment classification; and

WHEREAS, cabins/cottages at lakes and recreational areas that are located outside of an Organized Hamlet, used on a seasonal basis, are interpreted as being "dwellings" and are entitled to a tax exemption under 331(1)(q); 

THEREFORE BE IT RESOLVED, that The Rural Municipality Act, 1989 be amended to give a definition of a "dwelling" as referred to in section 331 and specifically state that the assessment classification Seasonal Residential Improvements are not included for an exemption for the purpose of clause (1)(q).

Response From GRAA:

In 2001, an amendment to Clause 331(1)(q) of the RMA took effect intended to ensure that only agricultural land could be used for the tax exemption. The original intent of the exemption was to assist the agricultural sector, and the changes restored this intent.

It is my understanding that this resolution would define "dwelling" to exclude seasonal residential properties from a tax exemption under 331(1)(q).

It would be helpful if SARM could discuss this issue with PARCS, develop a consensus and make a recommendation to government.