The Government of Saskatchewan has set an interim mill rate factor limit for the 2013 taxation year to support the equitable distribution of property taxes set by municipalities among property classes.
The Government of Saskatchewan has set an interim mill rate factor limit for the 2013 taxation year to support the equitable distribution of property taxes set by municipalities among property classes.
"Most commercial and industrial property owners in the province pay higher municipal property taxes than those paid on agricultural and residential properties for delivery of many of the same municipal services," said Jim Reiter, minister of government relations.
"Setting this interim limit will be a first step toward fairer taxation among all municipal property tax classes going forward and focuses on the most extreme occurrences."
The maximum ratio of highest to lowest mill rate factors that may be implemented by a municipality in 2013 will be 15.0.
The interim limit will be placed in The Municipalities Regulations and is retroactive to January 1, 2013 and therefore applicable for the 2013 municipal taxation year.
Municipalities should not interpret this as a target; the majority have far lower ratios and should continue to strive for taxation fairness. Mill rate factors do not apply to education property taxes. The interim limit does not apply to cities or northern municipalities since they are all well below it.
The Ministry of Government Relations will conduct further review and consult with business stakeholders and the municipal sector to develop a long-term policy for placing limits on mill rate factors to take effect in 2014.
The review will include all property tax tools and all categories of municipalities, including cities and northern municipalities.
