Resolutions

Education Property Tax Collection Fee

Year: 2020

Resolution

Whereas municipalities are held responsible under The Education Property Tax Act to levy education property taxes on their residents and submit the proceeds to the Government of Saskatchewan, for inclusion in the General Revenue Fund; and

Whereas the implementation of the Act in 2018 nullified any agreements for administrative fees that were previously in place, when municipalities collected education taxes and remitted them directly to school divisions, causing some SUMA members significant financial losses; and

Whereas the Act, as written, specifically forbids any administration fees for education property tax collection; and

Whereas municipalities are required to undertake considerable additional work to levy, administer separate accounts, and remit education property taxes; and

Whereas the Government of Saskatchewan collects an administration fee for administering and distributing funding from the federal government to municipalities under the Gas Tax Program;

Therefore be it resolved that the Saskatchewan Urban Municipalities Association advocate the Minister of Finance and the Minister of Education to amend The Education Property Tax Act to allow municipalities to retain a percentage of education property taxes equal to that the Government of Saskatchewan retains for Gas Tax Fund Administration, to compensate municipalities for the costs of levying, administering, and remitting education property taxes on behalf of the Government of Saskatchewan.

ACTS AFFECTED: The Education Property Tax Act      REGION/SECTOR AFFECTED: ALL      2020-09

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