News Release

Saskatchewan Real Estate Association (SREA)

Thursday March 31, 2005

REALTORS Say Business Tax Review Should Include Property Tax

Saskatchewan’s REALTORS have called on the government to include property taxes in the mandate of the new Business Tax Review Commission.

At a Saskatoon news conference Thursday March 31, spokesmen for the Saskatchewan Real Estate Association said the idea of an independent tax review is sound, the panel members are credible, but the government has excluded the largest single capital tax in the province from their review.

SREA says property taxes cost $1.3 billion last year, with about a third coming from commercial and industrial property.

“Property tax is a huge factor for business, larger than most of the taxes included in the review. No credible review can ignore it.”

REALTORS noted that property taxes cannot be ignored because they are levied locally. They say the provincial government is directly responsible for property tax increases because the government ignored the Boughen Commission on school taxation, and has taken no action on revenue sharing for municipalities.

“Spending in this year’s budget increased several hundred million dollars, but not even one dollar was added to revenue sharing. As a result, property taxes will rise again. It is the one tax that should NOT have been excluded from review.”

SREA said property is the most widely held form of capital, in the form of homes, farms and small businesses. It is often used by start-up businesses as collateral.

“Our property taxes are higher in relation to property value than anywhere in Canada. That is one reason our assets have lower values than elsewhere. A dollar borrowed against property here is a larger risk than a dollar borrowed on a higher-value, lower-taxed asset elsewhere. Property is the capital of the grassroots business person – a very good reason it should have been included in the study.”

Information: Bill Madder 306-373-3350