Province betrays property owners

The Saskatchewan Party government has betrayed property owners in communities across Saskatchewan by unilaterally cancelling “grants-in-lieu” programs that have been in place for up to 80 years.

What does “grants-in-lieu” mean?

In Canada, our Constitution says that no level of government can tax another level of government. Fair enough. But municipalities have a problem. They provide a lot of services (like fire protection, police, water and sewer, garbage collection, streets and sidewalks, etc.), but have only one local source of revenue: property tax.

If you are a property of another level of government, you get all of that stuff for nothing, because it is paid for by property tax. Is that really fair?

Beginning in the 1930s, provincial Crown corporations began to voluntarily help pay for those things they really need and value, like fire protection, police, etc. They also appreciated not being taxed to bury power lines and gas lines in municipal property, like they would be taxed if they were private corporations. Eighty years ago, provincial Crown corporations started to voluntarily pay “grants-in-lieu of taxes” to municipalities.

Did they have to do that? No.

Was it the right thing to do? Yes, for 80 years.

Now, the Saskatchewan Party government says to municipalities, “We’re not doing that anymore. Good luck.”

In their place, property owners will pay extra property tax. A lot extra.

I never thought I would ever see this betrayal of property owners from our provincial government. Glenn Hagel, Moose Jaw