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Coronavirus: Saskatoon Chamber of Commerce asks City Hall for tax deferrals

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Saskatoon Chamber of Commerce asks for tax deferrals
WATCH: The Saskatoon Chamber of Commerce says City Hall needs to further delay property tax payments and utility fees to help businesses during the COVID-19 pandemic – Apr 19, 2020

The Saskatoon Chamber of Commerce is asking the City of Saskatoon to again defer property tax and utility fees to help small businesses struggling during the COVID-19 pandemic.

The chamber is also asking that repayment for the deferral for both taxes and utility fees be spread over two or three years and that late fees be removed.

“We are in unprecedented times,” said chamber CEO Darla Lindbjerg.

“And if the government wants to see our economy get back to work as quickly as possible, they’re going to have to keep stepping up to the plate.”

Lindbjerg told Global News the fee deferrals are needed because businesses are suffering — and that some can “barely make rent right now.” The measures put in place to stem the spread of the novel coronavirus have also severely limited the ability of many businesses to function and earn any income.

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Provincial regulations require any non-essential business to be closed and people to stay home. That means many businesses, in effect, can’t do business.

Responses to a survey put out in March by the chamber, an organization representing member businesses, showed that 151 business owners “foresee” a risk of going out of business if the pandemic continues.

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Almost half of the 408 respondents said they could foresee staff layoffs and 34 per cent said they could foresee a closure of an office or facility.

 

“Saskatoon and Saskatchewan are full of small businesses and small businesses are going to be hit the hardest through this time,” Lindbjerg said.

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She told Global News the chamber is also asking SaskPower to defer payments.

The written request is scheduled to be presented to the city’s Governance and Priorities meeting on Monday, though any decision will have to wait until a city council meeting.

If the councillors choose to defer property taxes and utility rates it will be for the second time. Council passed a similar measure in March. Property tax notices will be delivered by the end of May and the due date will still by June 30, 2020, but there is now a three-month grace period. Late payment charges are currently suspended until September as well.

The chamber’s proposal would extend those deadlines even further.

“This is an impact that our local government can [do] for our business community that will do some good in the short term and help create sustainability,” Lindbjerg said.

She said she is usually against governments helping businesses but it’s needed this time. She said businesses surviving the lockdown will depend on the level of support they receive from governments.

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