From the Government Of Saskatchewan Website
Government Relations Minister Donna Harpauer on November 28th, 2016 announced the percentages of value (POV) that will be applied in the province-wide 2017 revaluation for property taxes.
Changes to POV impact the tax level among property classes. POV are used to calculate taxable assessments from assessed values, calculated by assessment appraisers. Taxable assessments are then multiplied by the mill rate established by municipalities for the municipal portion and the province for the education portion, to determine property tax.
The value of Saskatchewan taxable assessment has increased from $108 billion in 2013 to $146 billion in 2017. The largest increases are to farm land which has seen values increase by more than 100 per cent over the four year period.
“The province undertakes a review of POV and property classes every four years in conjunction with revaluation to determine whether adjustments are required,” Harpauer said. “We want to make sure property owners are treated fairly while promoting economic growth in communities across the province.”
The 2017 POV to be applied will be as follows:
The non-arable (range) land or pasture land POV will increase to 45 per cent in 2017 compared to the 2013 rate of 40 per cent.The residential, multi-unit residential and seasonal residential POV will increase to 80 per cent in 2017 compared to the 2013 rate of 70 per cent.
All other POV are to remain the same for 2017 as they were for 2013:
Cultivated agricultural land remains at 55 per cent.
All Commercial/industrial will stay at 100 per cent.
In 2005, the POV on pasture land was set at the previous level in support of producers managing the Bovine spongiform encephalopathy (BSE) crisis. The pasture POV is now being updated to reflect current values and to mitigate some of the tax shift onto cultivated agricultural properties.
Increasing the residential POV to 80 per cent will provide commercial/industrial properties in some urban areas relief from a projected municipal tax increase due to revaluation, and support economic activity. Residential properties will still receive a municipal tax benefit from revaluation, with the amount depending on the property type.
“The ministry carried out extensive consultations last summer on projected revaluation-driven tax shifts,” Harpauer said. “Municipalities have the tools to provide additional tax relief if they wish to do so.”
Amendments to regulations will be required to implement the POV changes. Education Property Tax mill rates, which further impact property taxes, are decided in the budget process and announced on budget day in March, 2017
If you have any questions on assessment, and how this may affect you, please contact the Town Office.