Released on May 28, 2008
Fire trucks purchased by the Regina and Saskatoon Airport Authorities are now Provincial Sales Tax (PST) exempt.
"Effective today, these airport authorities will realize substantial savings on fire truck purchases," Finance Minister Rod Gantefoer said. "This measure brings these two airport authorities in line with the PST exemption enjoyed by the other municipal airports in the province."
Fire trucks typically cost between $500,000 - $1 million, which means a PST exemption of between $25,000 - $50,000.
In the late 1990s, the province agreed to specific targeted PST exemptions for certain types of equipment purchased by municipalities. These included a PST exemption for fire trucks purchased by municipalities, a measure which was implemented in 1998.
When the exemption for fire trucks was implemented, the airport authorities did not exist in Saskatchewan and were therefore not included within the scope of the regulations providing the PST exemption. In 1999, one year after the regulations were implemented authorizing PST exemptions on municipal fire trucks, Transport Canada turned over operation of Saskatchewan's two major airports to the Regina and Saskatoon Airport Authorities.
Providing this PST exemption is consistent with the federal Goods and Services Tax (GST) treatment of airport authorities which are treated like municipalities (effectively GST exempt).
Extending the exemption to fire trucks purchased by airport authorities will require minor amendments to The Municipal Fire Truck (PST) Exemption Regulations. These amendments will be made in the near future.
The exemptions are not retroactive.
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For more information, contact:
Lorri Thacyk
Finance
Regina
Phone: 306-787-6605
Email: lorri.thacyk@gov.sk.ca