The Government of Saskatchewan feels commercial and industrial companies are paying more than their fair share of property taxes in some rural municipalities (RMs). The province is imposing new limits, which is causing concern for the Saskatchewan Association of Rural Municipalities (SARM).
“The impact on the infrastructure of a municipality 365 days a year, 24 hours a day is far greater by the commercial sector than by the agriculture sector, the residential sector,” Sherry Jimmy, chair of the North West Municipalities Association, told CTV News.
Regarding the upcoming changes, the Ministry of Government Relations outlined in a statement that:
“The effective tax rate limit maintains local control over municipal property taxes and ensures local tax tools are used to distribute property tax more equitably.”
Starting next year, commercial and industrial property owners can be charged no more than seven times what farm land is taxed.
92 per cent of rural municipalities were already within the guidelines. 21 RMs exceeded it, including some in the oil patch.
“The rural municipalities within the North West Municipalities Association have been lobbying government for quite some time about the impact that a change will have.”
It means a tax shift where commercial and industrial property owners will pay approximately $6 million less across Saskatchewan. Farmers could potential pay $4 million more, residential ratepayers an additional $2 million, unless services are cut.
SARM says rural municipalities should have the autonomy to set taxation as they see fit to keep up with pressures on infrastructure.
The government is moving forward with the changes for 2023 but RMs can apply for an extension.
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