Saskatchewan's Government Relations Minister Jim Reiter has released the provincial percentages of value used to set property taxes for the 2013 taxation year.
"Saskatchewan is seeing unprecedented growth and property values are increasing," Reiter says. "Since our 2009 revaluation of property in Saskatchewan, the value has grown from $58 billion to $97 billion. Our government is taking a thoughtful and measured approach to ease potential property tax increases on farmland, commercial and residential properties.
"Our government has made significant reductions to education property tax since 2009, and we want to ensure Saskatchewan people benefit from that tax relief."
Changes to percentages of value (POV) affect the tax level among property classes. POV are used to calculate taxable assessments from assessed values calculated by appraisers. Taxable assessments are then multiplied by the mill rate, established by municipalities for the municipal portion and the province for the education portion, to determine property tax.
The Government of Saskatchewan is adjusting the POV for grain elevators, railway rights of way and pipelines from 75 per cent to 100 per cent. This levels the playing field with other commercial/industrial property.
All other POV for farmland, residential and other commercial properties remain unchanged from the previous revaluation year (2009).
Significant education property tax (EPT) shifts were projected to occur within the commercial/industrial property class due to significant differences in the growth in assessment values. To help alleviate these shifts, the commercial/industrial tiers for the EPT will be eliminated and the commercial/industrial property class will be separated into two classes. This could potentially help adjust the balance of EPT raised within the commercial/industrial property class, mitigate shifts from revaluation and eliminate a perceived disincentive to grow businesses.
