Saskatchewan Real Estate Association

News Release

March 3, 2006

 

 

Saskatchewan’s REALTORS say the provincial government is avoiding the issue of fundamental property tax reform.

 

Responding the Premier Lorne Calvert’s Friday announcement regarding farm taxes, the Saskatchewan Real Estate Association (SREA) said the government has once again responded to a crisis with a band-aid.

 

“We welcome any relief for the farm community” said SREA spokesman Al Didur

“Unfortunately this relief does not come in the way of a real change. It is simply another patch on a leaking dike. While we recognize this is a step in the right direction, it falls far short of addressing the structural problem. A long term solution must be found to reduce the high level of property tax which is a burden on all property owners.”

 

SREA called on the government to take a leadership role by overhauling property tax, as has been called for repeatedly by many Saskatchewan organizations, and recommended by the Boughen Commission two years ago.

 

Mr. Didur said property tax in Saskatchewan is still massively out of line with how it is used in other provinces, and our urban centers are still waiting for a genuine reform that would share some of the province’s rising revenues on a permanent basis.

 

SREA wants the school property tax cut in half on all properties, and a revenue sharing formula tied to the province’s economic growth put in place to help local governments reduce the municipal property tax.

 

A fundamental reform of the antiquated property tax would:

 

·        Commit to shifting at least half of school costs off property over the next five years.

·        Make the reduction permanent with a cap on the school mill rate.

·        Address the municipal side of property taxes by indexing local government funding to the growth in provincial tax bases.

 

Property tax is a tax on the most widely-held kind of capital, the property of hundreds of thousands of individuals and families all over the province. It is often a family’s largest asset, and the most common form of collateral for entrepreneurs. Saskatchewan’s school tax share of education, at 60%, is the highest anywhere in Canada.

 

 

Information: Bill Madder 306-373-3350