For Immediate Use Thursday May 13, 2004 306-220-9570

Government Must Show Leadership on Property Tax Reform

The provincial government’s response to the Boughen Commission is narrow, and fails to show leadership on this critical issue, say Saskatchewan’s REALTORs.

Saskatchewan Real Estate Association executive vice president Bill Madder said Learning Minister Andrew Thomson’s focus on internal technical questions around the size of school divisions is very disappointing.

“The so-called ‘commitment to a long-term solution to lowering education property taxes’ is recycled verbiage with no new substance or value added. Linking it to federal equalization is a red herring. The package is essentially meaningless.”

“Real property tax reform can move us toward healthy communities, tax fairness and drive economic growth. These are urgent and important issues. There are exciting opportunities for new ideas in this sector. The government said it was time for change. We hoped for better than this.”

Mr. Madder said the province will have to show a more imaginative and strategic approach to reform, or risk losing its credibility on the issue.

“This problem will not be buried; it must be solved. The challenge calls for vision, not tinkering. We hope the government will begin work on a genuine reform agenda, and do it without further delay.”

The government can still show that it understands the economic impact of property taxes, and the growth opportunity it can create by moving on reform, Mr. Madder noted. He identified three key points that an effective reform package must recognize:

Taxing property is taxing capital. That is always a bad idea if you want to encourage growth.

Future growth requires healthy communities. That means shifting from property tax toward revenue sharing to support municipal infrastructure and services.

Education is important to young people and drives the economy. That means an adequate funding base and cutting the province’s current 60% dependence on property taxes for school costs.

Mr. Madder said REALTORs will seek opportunities to advance a broad approach to property tax reform with elected officials in the near future.

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