In advance of its upcoming property tax assessment revaluation cycle, the Government of Saskatchewan recently announced a reduced percentage of value multiplier for certain asset classes that will net a 15% reduction in assessment values province-wide.
For 2021, the percentage of value for resource, pipeline, commercial, industrial, elevator, and railway properties will be reduced to 85%, as compared to 100% in 2017.
Aimed at improving tax fairness by narrowing the range of percentages of value that currently apply to property, the decision also addresses the ongoing challenge of staying competitive that many businesses are facing because of COVID-19.
While the news comes as welcome relief to Saskatchewan business owners, it remains to be seen where individual councils in each regional municipality will set their tax mill rates this spring. A higher mill rate in response to the reduction is possible for municipalities looking to hold on to their existing property tax revenue.
As an engaged stakeholder and industry representative, Ryan is committed to advocating on behalf of our clients. We will continue to provide updates on this topic as new developments unfold.
For further information on the proposed Saskatchewan municipal tax changes, access the press release.
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.