A new study from the Canadian Federation of Independent Business (CFIB) suggests that gross inequities exist in Saskatchewan’s property tax system. The research report, entitled Property Tax Inequities in Saskatchewan: SMEs Pay More Than Their Share, examines the tax gap between business and residential property tax rates in municipalities across the province. The gap measures the difference in total property tax rates applied to commercial and residential properties.

In 2005, commercial property owners across Saskatchewan paid between $1.30 to $3.50 for every dollar in property taxes paid by homeowners. Commercial property owners in southest communities paid between $1.30 to $3.30 for every dollar in property taxes paid by residential property owners. Moosomin was the least fair tax system in the southeast, and the second worst offender in the province. Six towns recorded more favourable tax gap ratios of 1.4 or lower.

“Property taxes are profit-insensitive and kill growth in communities. It is troubling that small businesses are bearing the brunt of the property tax burden. Most businesses don’t have a problem paying their fair share for the services they use, but currently they are paying much more than their fair share,” said Marilyn Braun-Pollon, CFIB’s director of provincial affairs for Saskatchewan.

CFIB believes this report should send a strong reminder to the provincial government, as well as the many municipal and school division leaders that property taxes have a huge impact on Saskatchewan businesses. “While business owners have welcomed significant corporate tax and sales tax relief in 2006, CFIB believes the next step for the provincial government is to address Saskatchewan’s high property taxes.”

CFIB represents 5,250 small-and medium-sized businesses in Saskatchewan, and has 105,000 members across Canada.

Tax gap ratios and total taxes on property
with a fair value of $100,000, southeast Sask. towns

Residential Taxes, Commercial Taxes, Ratio Tax:
Moosomin: $2,086, $6,953, 3.3;
Pilot Butte: $1,910, $4,965, 2.6;
Kipling: $2,756, $5,129, 1.9;
Oxbow: $2,518, $4,907, 1.9;
Davidson: $2,584, $4,405, 1.7;
Balgonie: $2,152, $3,467, 1.6;
Carlyle: $2,117, $3,233, 1.5;
Carnduff: $2,547, $3,937, 1.5;
Indian Head: $2,311, $3,302, 1.4;
Lumsden: $1,820, $2,600, 1.4;
Grenfell: $2,987, $4,268, 1.4;
Fort Qu’Appelle: $2,320, $3,292, 1.4;
Regina Beach: $1,967, $2,702, 1.4;
White City: $2,236, $3,002, 1.3.Source:

CFIB calculations based on 2005 property tax data supplied by Government of Saskatchewan, Government Relations.

*An 8% tax credit has been applied to the education portion of the tax calculation and is factored into both the tax ratio and the commercial taxes.