Released on October 19, 2004
The provincial percentages of value, used to establish taxable assessments for each property tax class, were released today by Government Relations Minister Len Taylor.Owners of non-arable (range) land will now pay property taxes based on 40 per cent of the property's assessed value – reduced from 50 per cent. This will limit the predicted province-wide property tax shift to pasture land as a result of the 2005 revaluation.
"We have listened to numerous stakeholders during our consultations that said the impact of the BSE crisis, which has occurred since 2002 revaluation year, should be taken into account when establishing percentages of value," Taylor said. "Reducing the percentage of value for pasture land will cushion the impact of the 2005 revaluation for these producers."
Taylor reiterated that the provincial government is committed to reducing the education portion of property taxes currently borne by property owners, and further, that 30 per cent of the anticipated one-time change in the 2004 federal equalization payment will be provided to education property tax relief.
The percentages of value remain the same for all other types of property.
"In addition to establishing percentage of values, we have made changes to some seldom used municipal tax tools to simplify the property tax system," Taylor said.
Changes to local property tax tools include:
· Removing the never-used authority of municipalities to phase in assessments.
· Removing the seldom-used authority of towns, villages, resort villages, rural municipalities and northern municipalities to phase in property taxes. Cities will continue to have this authority.
· Removing the authority for towns, villages and resort villages to create a residential condominium subclass for the purposes of applying local property tax tools. This subclass is seldom used as residential properties now have the same percentage of value. Cities will continue to have this authority.
· Combining the seasonal and residential property classes for the purpose of applying local property tax tools. Only a few municipalities set tax policies that distinguish between these property classes.
Extensive consultations on the percentages of value and local tax tools were conducted with local government associations and representatives of the agricultural, residential, oil and gas, commercial/business and other sectors.
The changes to percentages of value and local property tax tools will take effect January 1st, 2005.
Full details of the property tax tools and 2005 revaluation process can be found in the reports entitled Review of Property Tax Tools and 2005 Property Revaluation at the website: www.municipal.gov.sk.ca.
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For More Information, Contact:
| Maureen Boyle Government Relations Regina Phone: (306) 787-5959 |