2005 Property Tax Report

REGINA: Taxpayers across the province are noticing a significant jump in their property tax bills in this re-assessment year and it's no accident, says the Canadian Taxpayers Federation (CTF).

An analysis of property tax data since 1985 released today by the CTF shows that municipalities use re-assessments to hike property taxes. In the two most recent assessment years - 1997 and 2001 - property taxes jumped an average 6.9 per cent, which is double the average increase in non-assessment years.

Local taxpayers have recently paid their 2005 property taxes, which includes this year's re-assessment. CTF phones are ringing off the hook with concerns about soaring tax bills.

"Re-assessment is not intended to be a tool for municipalities to rake in more tax dollars," said CTF Saskatchewan director David MacLean. "The data clearly shows that municipalities are taking advantage of re-assessment to top up government coffers. One can only guess how steep the tax hike will be for 2005, but there is no reason to believe this year will be any different than the previous two re-assessment years."

The report, entitled 2005 Saskatchewan Property Tax Review, also notes that municipal taxes province-wide have risen faster than inflation. Had municipal revenue increases been held to inflation since 2000, the total levy would be $488 million - a difference of $52 million annually.

It also notes that since 1997, cities and towns have seen school taxes take up a smaller portion of their property tax bill, whereas RMs have seen school taxes take up a larger portion of the bill.

"The burden of school taxes is unfairly high for rural Saskatchewan," said MacLean. "Big cities have seen school taxes take up a smaller portion of their property tax bills while rural areas have seen the opposite. This clearly shows that across-the-board 8 per cent rebate announced by government does not benefit those who need it most."

"The findings in this report clearly illustrate the need for change - on both the school and municipal tax sides," said MacLean. "The government must introduce legislation protecting home owners from unfair and dishonest assessment-related tax increases, they need to address the school tax problem, and municipalities and school boards must find more cost effective ways of delivering services."