Last month, the province announced the percentages of value (POV) that will be applied for the upcoming 2017 revaluation for property taxes.
What is Percentages of Value (POV)?
POV are used to calculate taxable assessments from assessed values, calculated by assessment appraisers. Taxable assessments are used by the municipal council to implement tax policy.
Changes to POV impact the tax level among property classes. Municipal councils have tax tools available to them to mitigate the shifts and remain revenue neutral if that is a desired goal. More information is available in the ministry’s publication titled Municipal Tax Policy.
Saskatchewan’s Taxable Assessment Value
The value of Saskatchewan taxable assessment has increased from $108 billion in 2013 to $146 billion in 2017. The largest increases are to farm land which has seen values increase by more than 100 per cent over the four year period.
In 2016, the Ministry of Government Relations carried out extensive consultations on the projected revaluation-driven tax shifts. These consultations helped to determine whether adjustments are required for the 2017 Revaluation and to make sure property owners are treated fairly while promoting economic growth in communities across Saskatchewan. Government’s objective is not to mitigate all shifts due to revaluation. There were some significant shifts in 2009 and 2013 to oil and gas, seasonal residential and other residential properties that were not mitigated. The purpose of revaluation is to update assessments to reflect what has happened in the market place.
2017 Percentages of Value
|| Non-arable (range) land or pasture land
2017 POV: 45% (2013 POV: 40%)
In 2005, the POV on pasture land was set at the previous level in support of producers managing the Bovine spongiform encephalopathy (BSE) crisis. The pasture POV was updated to reflect current values and to mitigate some of the tax shift onto cultivated agricultural properties.
|| Residential, multi-unit residential and seasonal residential
2017 POV: 80% (2013 POV: 70%)
Increasing the residential POV to 80% will provide commercial/industrial properties in some urban areas relief from a projected municipal tax increase due to revaluation, and support economic activity. Residential properties will still receive a municipal tax benefit from revaluation, with the amount depending on the property type and municipality.
Cultivated agricultural land
2017 POV: 55% (2013 POV: 55%)
2017 POV: 100% (2013 POV: 100%)
The Saskatchewan Assessment Management Agency (SAMA) and other assessment service providers will be using the new POV to calculate taxable assessments for municipalities.
Further information about municipal tax tools and general municipal administration may be obtained by contacting a Municipal Advisor with the Ministry of Government Relations at 306-787-2680 or email firstname.lastname@example.org