The Saskatchewan government said it will be changing the percentages of value (POV) used when the province-wide revaluation for property taxes takes place in 2017.
The change will impact owners of residential properties and non-arable land.
Residential, multi-unit and seasonal residential POV will increase to 80 per cent compared to 70 per cent in 2013.
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The POV for non-arable land or pasture land will increase from 40 per cent to 45 per cent.
POV will remain unchanged for cultivated agricultural land (55 per cent) and commercial and industrial properties (100 per cent).
“The province undertakes a review of POV and property classes every four years in conjunction with revaluation to determine whether adjustments are required,” Government Relations Minister Donna Harpauer said.
“We want to make sure property owners are treated fairly while promoting economic growth in communities across the province.”
Officials said increasing the residential POV will provide relief to some commercial and industrial properties from a projected municipal tax increase due to revaluation, which they said would help support economic activity.
They also said residential property owners will still receive a municipal tax benefit from municipalities, depending on the property type.
“The ministry carried out extensive consultations last summer on projected revaluation-driven tax shifts,” Harpauer said.
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“Municipalities have the tools to provide additional tax relief if they wish to do so.”
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POV is used to calculate taxable assessment from the assessed value of a property.
The taxable assessment is then multiplied by the mill rate established by municipalities to determine the municipal portion of the property tax.
It is also applied by the government to determine the education portion of the property tax.
According to the government, the value of the Saskatchewan taxable assessments will increase to $146 billion in 2017 from $108 billion in 2013.
The largest increases have been in farm land, with values having gone up more than 100 per cent since 2013.
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