The City of Saskatoon says thanks to the recent provincial budget it’s recommending a reduction in residential property taxes by nearly a single percentage. It’s because of the reinstatement of the SaskEnergy Grant in Lieu of taxes. Instead of traditional property taxes, the provincial government has paid the City grants in lieu of taxes for property and rights-of-way on which SaskPower, SaskEnergy, and TransGas operate within Saskatoon.
Last spring, the 2017-2018 Provincial Budget eliminated the provincial utility grants in lieu of taxes to municipalities. This left the City with a $11.4 million shortfall. The new property tax hike will be 3.79% which is a 0.91% reduction from what was originally established for 2018. That means a typical single family home which has an assessed value of $371-thousand will pay an additional $66 for the year. The recommendation will go to the Governance and Priorities Committee and then to City Council for final approval.