Released on March 9, 2011
80 Per Cent Education Tax Reduction on Farmland
In his address today to the Saskatchewan Association of Rural Municipalities (SARM) convention, Finance Minister Ken Krawetz announced the final stage of Education Property Tax reform.
"Today's announcement completes the largest education property tax cut in the history of Saskatchewan, reducing the agricultural mill rate from 7.08 to 3.91 as promised," Krawetz said.
In 2009, the government changed the funding formula which reduced the burden of Education Property Tax for all ratepayers.
"Once fully implemented in the upcoming budget, the education portion of property taxes on agricultural land will have been reduced by a total of 80 per cent," Krawetz said. "This includes an additional $31.3 million reduction in 2011. At the same time, we are committed to a corresponding increase in the provincial share of education funding."
At the recent Saskatchewan Urban Municipalities (SUMA) convention, Premier Brad Wall announced that the new municipal revenue sharing formula would also be fully implemented in the 2011-12 budget, with one point of the Provincial Sales Tax (PST) going to municipalities.
"Overall, municipalities will receive 2011-12 funding of $216.8 million, with rural municipalities and organized hamlets seeing an increase to $62.9 million, up $14.3 million in the last fiscal year," Krawetz said. "The rural economy is a key priority for this government to keep Saskatchewan growing and moving forward. Today's announcements reflect that priority."
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For more information, contact:
Randy Burton
Finance
Regina
Phone: 306-787-6578
Email: randy.burton@gov.sk.ca
Cell: 306-530-2049