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Tax Subclasses for Rural Municipalities

Res #: 4-25A
Number: 4
Year: 2025
Midterm: No
Expired: No
Responses Received: Yes
Departments: Saskatchewan Ministry of Government Relations

WHEREAS the rural and urban divide is becoming more pronounced all the time.

WHERAS The Municipalities Act legislates and outlines both urban and rural municipalities responsibilities to levy taxes and governs how taxes are levied.

WHEREAS under the current version of The Municipalities Act, urban municipalities have far more latitude in determining appropriate taxation through the use of tax subclasses.

WHEREAS under the current version of The Municipalities Act, urban municipalities have far more latitude in determining appropriate taxation through use of tax subclasses which is a distinct advantage that rural municipalities don’t enjoy.

BE IT RESOLVED that SARM lobby the provincial government to update The Municipalities Act to allow for the creation of subclasses of tax categories to create equity among urban and rural counterparts.

Responses From: Saskatchewan Ministry of Government Relations

April 28, 2025

  • Currently, no major changes are proposed to The Municipalities Act regarding subclass authority. Cities continue to be the only type of municipality with this authority.
  • The Government of Saskatchewan needs to consider the viewpoints of all stakeholders, including rural industry, as well as the impact on the broader economy and the province’s competitiveness. Separating specific industries or property types from the commercial property class could undermine the government’s focus on facilitating growth and reduce Saskatchewan’s economic competitiveness for rural and resource industry development.
  • Industry groups and many in the commercial/industrial sector already feel some rural municipalities are using their existing tax tools, such as mill rate factors and base taxes, to target or single out certain properties and tax them unfairly. Industry opposes any changes that would expand the ability to further differentiate property taxes for the commercial and industrial property class, or parts of it.
  • If municipalities want to use subclasses to lower taxes for certain properties, they have the ability to either partially or fully exempt or abate taxes, and to phase-in tax increases due to revaluation. This can be done to provide small businesses with a lower tax rate if desired.

Hon. Eric Schmalz – Minister of Government Relations, Government of Saskatchewan