Martensville Messenger November 17, 2016 | Page 5

Cities: 2015 Municipal property tax gaps (best to worst) and municipal taxes for $200,000 of assessed value: martensville messenger - nOvemBer 17, 2016 - Page 5 CFIB Ranks Best & Worst Property Tax Gaps In Saskatchewan Cities Martensville had lowest municipal property tax gap in 2015; Prince Albert the highest Cities: 2015 Total property tax gaps (best to worst) and total taxes for $200,000 of assessed value: Source: CFIB calculations based on 2015 property tax data from Government of Saskatchewan, Ministry of Government Relations. Now Open • Skate and Snow Boardshop The Canadian Federation of Independent Business (CFIB) released its annual comparison of property tax gaps in Saskatchewan municipalities. On average, commercial property owners paid 2.23 times what residential property owners paid in municipal property taxes. CFIB’s 9th annual edition of Wanted: Property Tax Fairness in Saskatchewan examines municipal and total property tax gaps for 75 municipalities and 31 Rural Municipalities (RMs) with populations of 1,000 or greater. The tax gap measures the ratio of commercial and residential property tax bills for properties assessed at a value of $200,000. “This report should be required reading for all recently elected municipal leaders as they determine their 2017 operating budgets in the coming weeks,” said Marilyn Braun-Pollon, CFIB’s VicePresident, Prairie and Agri-Business. “We worry many municipalities may continue to hike property taxes to fund unsustainable spending, which will further erode small business optimism.” A provincial tax gap of 2.23 means Saskatchewan commercial property owners paid, on average, $2.23 for every dollar in municipal property tax paid by homeowners. In Saskatchewan’s 15 cities, this amount ranged from $1.51 to $3.92, with an average of $2.39 (see Backgrounder). The Good: - Martensville boasted the lowest municipal property tax gap of 1.51 - Saskatoon had the lowest commercial municipal property tax bill of $1,782 The Bad: - Prince Albert had the most unfair tax system with a municipal property tax gap of 3.92, and had the highest commercial property tax bill of $6,350. When provincial education property taxes are factored in, commercial property owners in Saskatchewan’s cities paid, on average, 2.38 times what residential property owners paid in property taxes. “Some municipalities do a better job than others in making municipal property taxes fair for small businesses. However, many business owners continue to pay more than their fair share,” added Jennifer Henshaw, CFIB’s Policy Analyst for Saskatchewan and co-author of the report. “While cities claim they have a ‘revenue problem’, the fact is they have received a 169 per cent increase in municipal revenue sharing from 2007-08 to 2016-17,” said Henshaw. “We believe cities need to work harder to further contain costs and address the inequities in their municipal property tax system.” CFIB’s report outlines a series of recommendations for provincial and municipal governments to ensure the property tax system becomes more balanced over time. To read the full report go to CFIB’s Sat-Sun 12-6 Saskatchewan website: www.cfib. 306-653-4778 ca/sk Follow us on Twitter: @cfibsk. • Footwear • Headwear • Apparel • Ladies Fashion Hours Tues-Wed 10-6, Thurs 10-9, Closed Mondays 620 Central Street West in Warman municipal Property tax gaps For a property assessed at $200,000: ► Martensville had the lowest municipal property tax gap, at 1.51 ► Prince Albert had the highest municipal property tax gap, at 3.92 ► Saskatoon had the lowest commercial municipal property tax bill, at $1,782 ► Prince Albert had the highest commercial municipal property tax bill, at $6,350 local governments CFIB has made a number of recommendations to reduce the municipal property tax gap: ► Develop and implement a plan over time to reduce the commercial-to-residential property tax gap. ► Limit year-over-year operating spending growth to a maximum of inflation and population growth. ► If applicable, eliminate costly and outdated municipal banked sick day policies and replace with affordable short-term disability plans. ► Review current programs and services to identify areas that can be streamlined or eliminated. ► Introduce a plan to reduce the size and cost of the municipal civil service (primarily through attrition). ► If applicable, consider the introduction of a base tax for all homeowners. total Property tax gaps For a property assessed at $200,000: ► Martensville had the lowest total property tax gap, at 1.75 ► Prince Albert had the highest total property tax gap, at 3.45 ► Saskatoon had the lowest total commercial property tax bill, at $3,438 ► Prince Albert had the highest total commercial property tax bill, at $8,006 Provincial government CFIB has made a number of recommendations to reduce the total property tax gap: ► Introduce a long-term strategy to phase out the use of mill rate factors. ► Reject any proposal that would provide increased taxation powers to municipalities. ► Freeze funding to municipalities (e.g. transfers from the Municipal Operating Grant) at current levels until municipalities better manage their operating spending. ► Reject raising education property taxes to pay for infrastructure projects. For a complete analysis of property tax data, including methodology and regional breakdowns, please refer to the full report: “Wanted: Property Tax Fairness in Saskatchewan,” CFIB, 2016. http://cfib.ca/a8890e Did you know When you ADVERTISE with the MESSENGER... ALL of the NATION sees your advertisement On a FREE Digital copy of the MARTENSVILLE MESSENGER NEWSPAPER via our website.... Visit www.martensvillemessenger.ca