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Released on August 27, 2009
Property owners from across rural Saskatchewan will be receiving good news on their tax notices, which are set to be issued by municipalities over the next few weeks. Most Saskatchewan residents will now be paying less education property tax. If residents were impacted by increased assessments, they will notice that this increase has been significantly offset by a reduction in education property taxes.
"I hope that when rural Saskatchewan residents open their tax notices, they are pleasantly surprised by the results of the changes our government has made to education property tax rates," Deputy Premier and Education Minister Ken Krawetz said.
The new funding system for kindergarten to grade 12 education includes cutting and capping education property tax rates by setting province-wide mill rates for each of the three major property classes - residential, commercial and agricultural.
Actual examples of this mill rate cap will mean a farmer in the rural municipality of Webb will see $999 in education tax savings on every ten quarter sections of farmland. In the rural municipality of Cupar, a farm family will see $1092 in education tax savings on every ten quarter sections of farmland. A family home in Kamsack worth $80,000 in 2008 will receive a $673 education tax savings despite a nine per cent increase in assessment. A similarly valued family home in Craik will see an $802 decrease in education taxes despite an increase of 20.3 per cent to the taxable assessment.
In 2009, the overall amount of tax paid by property owners to fund education will be reduced by $103 million, or 14 per cent compared to last year. The education property tax will be reduced by a further $53 million in 2010, with the province assuming an offsetting share of the funding. At that point, the provincial government will be funding about 66 per cent of the cost of education.
"I am proud that we have been able to deliver the largest reduction in the education portion of property taxes in Saskatchewan's history, while taking measures to ensure these savings continue," Krawetz said. "As well, we're increasing our provincial share of funding for schools in Saskatchewan by $241 million, demonstrating our commitment to appropriate funding for Saskatchewan schools."
Please refer to the backgrounder for additional details on the calculations used to provide actual examples of education tax savings.
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For more information, contact:
Jacquie McLean
Ministry of Education
Regina
Phone: (306) 787-5609
Email: jacquie.mclean@gov.sk.ca
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