Res #: 22-10M
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
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.