Tax Tools

Res #: 22-10M
Number: 22
Year: 2010
Midterm: Yes
Expired: Yes
Responses Received: No
Departments: Saskatchewan Ministry of Municipal Affairs

WHEREAS there is a wide variance in the percentages of increases in fair value assessments in a property class; and

WHEREAS rural municipalities need the ability to use tax tools for sub-classes within a property class to help off set major assessment swings similar to those legislated to cities;

BE IT RESOLVED that rural municipalities be given the required legislative authority to use mill rate factors on property sub-classes within property tax classes as provided to the cities through Section 255 of The Cities Act.

Previously Passed Resolutions
Resolution 21-05M:
BE IT RESOLVED that rural municipalities be given the power and authority to implement sub-classes and neighbourhoods within their municipalities, so that tax tools may be applied to regulate and address assessment adjustments.

Response from Honourable Darryl Hickie, Minister of Municipal Affairs:

  • A fundamental principle in property taxation in Saskatchewan and across North America is that it is based on the ad valorem principle, that is, property is taxed according to its value.
  • Saskatchewan′s property tax system already recognizes a high degree of autonomy for municipalities to set local property tax policies. This includes the use of a variety of local tax tools that RMs have access to including mill rate factors, minimum tax, base tax, and local property tax exemption.
  • Cities do have authority to create subclasses within a property class. Typically there would be a large number of properties in the city that would fall within a subclass.
  • Rural municipalities, on the other hand, have fewer properties and may only have a couple of properties that would fall within a subclass. Establishing a subclass could be perceived as targeting the few properties within it.
  • Industries in rural Saskatchewan have expressed concern to government about this happening.