Q: What happens if a municipality exempts a property from taxation?
Q: Are there any exceptions making up the other taxing authority's (OTA) lost revenue when exempting a property?
Q: When council enters into a fixed assessment agreement with any person, is the municipality required to make up the other taxing authority's (OTA) lost revenue?
Q: What percentage does the municipality keep when collecting taxes on behalf of a regional park?
Q: What percentage of the hamlet taxes does the rural municipality keep when administering an organized hamlet and how is this impacted by tax tools?
Q: What are the taxes on forest fringe lands?
Q: How do I get my property taxes reduced?
Q: If a municipal council wants to give a tax abatement, how is the education tax impacted? Does the school have to agree to the abatement?
Q: What are the tax exemptions for church property?
Q: We have written to an individual a number of times regarding his tax arrears, to which we have not received any response. A member of Council has suggested that his water be disconnected until such time as he responds. Can we do this?
Q: I purchased a small house in a small town several years ago. The house has been vacant for years and is no longer habitable. Sales attempts have been unsuccessful and I no longer want to pay the property taxes. What are my options?
Q. The owner of a property in our municipality has transferred the title to the property to the municipality, without discussing the matter with council in advance. The municipality does not want to own this property. What can be done?
Q: What happens if a municipality exempts a property from taxation?
A: When a municipality exempts any land or improvement from taxation, it is required to raise, on behalf of any other taxing authority (OTA), an amount equal to what would have been levied if the exemption had not taken place. This is done by the municipality adjusting the OTA's uniform mill rate within the municipality.
The municipality is not required to make up the lost revenue for the OTA if it agrees to the exemption.
Q: Are there any exceptions making up the other taxing authority's (OTA) lost revenue when exempting a property?
A: Yes. When a municipality exempts any land or improvement from taxation for economic development purposes, the municipality is not required to make up the lost revenue on behalf of the OTA. Municipalities are required to provide written notice to the OTA before February 1 of the first year in which the tax exemption is to take place. Such an exemption may last for up to five years, after which an extension may be agreed to by the OTA.
Q: When council enters into a fixed assessment agreement with any person, is the municipality required to make up the other taxing authority's (OTA) lost revenue?
A: No. The provisions of the agreement prevail and there is no adjustment made on behalf of the OTA.
Q: What percentage does the municipality keep when collecting taxes on behalf of a regional park?
A: The municipality retains 20% of the amount of taxes collected on behalf of the regional park authority for administrative costs incurred by the municipality. The council and the regional park authority may, however agree to a different amount.
Q: What percentage of the hamlet taxes does the rural municipality keep when administering an organized hamlet and how is this impacted by tax tools?
A: An amount between 40% and 75% of the taxes collected may be allocated to the organized hamlet special account. This amount is to be determined by the council, in consultation with the hamlet board. Therefore, the rural municipality keeps 25% to 60% of the taxes collected.
Any amounts collected, whether based on a uniform mill rate or the use of tax tools, would be shared in accordance with the percentage agreed to by the council and organized hamlet board.
Q: What are the taxes on forest fringe lands?
A: See Forest Fringe - Questions & Answers (link below).
Q: How do I get my property taxes reduced?
A: Your total property tax bill is based on:
- the mill rates set by the local municipal council, the province or your separate school board and other taxing authorities (e.g. library boards),
- any tax tools used by the local municipality,
- your property's assessed value adjusted by provincial property tax policy,
- special charges for such things as local improvements serving certain properties, and
- special taxes levied by the municipality.
You may discuss how mill rates are set with your separate school board, municipal council and other taxing authorities, including Saskatchewan Education. You may also contact your municipality about the assessed value of your property, about what tax tools are used in the municipality, and about the local improvements affecting your property. For more details about the property taxation system, see document links below. In some cases, you may formally appeal the assessed value of your property. Additional information about the assessment process is available from the Saskatchewan Assessment Management Agency.
Q: If a municipal council wants to give a tax abatement, how is the education tax impacted? Does the school have to agree to the abatement?
A: The municipal council may cancel as much of the municipal portion of property taxes as it wants, but may only cancel the school portion where:
- there has been a change in the property to the extent that the council considers it inappropriate to collect the whole or a part of the taxes;
- a lease, licence, permit or contract has expired or been terminated with respect to land or improvements that are exempt from taxation;
- in the council's opinion, the taxes owing are uncollectible;
- in the council's opinion, the taxes owing have become uncollectible due to unforeseen hardship to the ratepayer; or
- the council and other taxing authority agree that the compromise or abatement is in the best interests of the community.
The municipality may cancel the school portion of property taxes only where one of the five terms above applies (1 - 5). The school must agree to the cancellation if one of the five points does not apply.
Q: What are the tax exemptions for church property?
A: In general, an exemption from taxation is allowed for buildings or improvements and the land on which they exist that are owned by a religious organization and used for public worship. The exemption does not apply to a religious organization's other property used for other purposes such as residences, parks or camping areas (i.e. only worship areas are exempt).
Clause 292(1)(e) of The Municipalities Act is worded to the effect to allow exemption from taxation for every place of public worship and the land used in connection with it to a maximum of 0.81 hectares or 10 square meters of land for every one square meter of occupied building space used as a place of public worship (whichever is greater).
Q: We have written to an individual a number of times regarding his tax arrears, to which we have not received any response. A member of Council has suggested that his water be disconnected until such time as he responds. Can we do this?
A: There is no authority in The Municipalities Act to disconnect water service to enforce collection of taxes. Provisions regarding the enforcement of taxes, are contained within Sections 318 to 338 of The Municipalities Act. Generally speaking, the options available to municipalities to enforce collection of taxes include:
- Civil action;
- Addition of penalties;
- Collection of insurance proceeds;
- Seizures of rent;
- Seizures of goods and chattels; and
- Take title of the property.
Q: I purchased a small house in a small town several years ago. The house has been vacant for years and is no longer habitable. Sales attempts have been unsuccessful and I no longer want to pay the property taxes. What are my options?
A: Options are limited where taxes are paid and further limited where taxes are unpaid. In both situations communication with the municipality is important. Together, the property owner and the municipality may be able to reach a satisfactory resolution.
1. You could demolish or relocate improvements to reduce the property tax liability; however where property taxes are unpaid an owner must not remove or demolish any improvements without prior written consent from the municipality. (Property taxes are based on the assessed value of the land and improvements)
2. You could also contact the council of the town/village to make an offer of title transfer to the municipality. Council may consider the transfer of the title of the property to the municipality if certain conditions are met. In the situation where the buildings are inhabitable and dangerous, the council may require that the improvements are removed or demolished before approving the transfer of the title. The council may impose different conditions in different situations.
3. If the property taxes are not kept current, the municipality may obtain title through tax enforcement.
Where a municipality does not want to own the property it may pursue other means to collect outstanding taxes instead of taking title to the property. See Municipal Tax Enforcement link below.
Q. The owner of a property in our municipality has transferred the title to the property to the municipality, without discussing the matter with council in advance. The municipality does not want to own this property. What can be done?
A. When municipalities receive title transfers for land that they do not wish to own, they may transfer the land back to the original owner. Information Services Corporation (ISC) charges a fee for the transfer, in the amount of 0.3 per cent of the value of the land. Full instructions, forms and fee schedule are available on the ISC website.
