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EDUCATION PROPERTY TAX CREDIT INCREASED TO 10 PER CENT

Released on April 23, 2007

Saskatchewan home owners and commercial property owners will receive a 10 per cent tax credit this year, a two per cent increase from the existing tax credit program.  The $2,500 cap for multi-unit residential and commercial and industrial property owners remains in place.

“We have committed to increasing the Education Property Tax Credit program from eight percent to 10 per cent,” Learning Minister Deb Higgins said.  “Even though there is uncertainty at the federal level as their main budget has not yet passed, we feel that it is important to education taxpayers as well as to our municipalities and boards of education to honour our commitment for the 2007 tax year and deepen the credit program.”

Funding for the increase to the tax credit program and the extension into the 2008 tax year comes from the commitment of 30 per cent of the $226 million one-time federal equalization dollars. 

“If the federal government’s budget does not pass, we will honour the increased funding for the program in 2007 through other sources or savings,” Higgins said.  “Tax notices from a number of municipalities are issued to taxpayers as early as May and June so we are ensuring that timelines for passage of the federal budget do not impede providing this credit to education tax payers.”

The 38 per cent tax credit on agricultural land introduced in 2006 will also be continued, to provide targeted education property tax relief for agricultural property owners.  This is ongoing, sustainable funding for education property tax relief to farmers and farm families and is not tied to federal equalization funding.

The Education Property Tax Credit program including the additional credit on agricultural land, together with the Provincial Sales tax reduction, business tax cuts and the indexation of personal income tax will save Saskatchewan people over half a billion dollars and will make life better for all Saskatchewan families.

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For more information, contact:

Jacquie McLean
Learning
Regina
Phone: 306-787-5609
Email: jmclean@sasked.gov.sk.ca

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