Resolutions

Compensation for the Collection of School Taxes

Year: 2011

Resolution

Therefore be it resolved that the SUMA lobby the Government of Saskatchewan to have each community reimbursed for services rendered in the collection of school taxes.

Provincial Response

Response: The benefits of property taxes go directly to municipalities and school divisions; therefore, it is appropriate that local governments should be responsible for local tax collection costs. Currently, municipalities are responsible for colleting property taxes on behalf of both themselves and school division, this system prevents unnecessary duplication of administration by the two local government structures. Also over time municipalities have developed expertise in tax collection which school divisions do not presently have. If compensation were provided for costs, wit would come from school divisions; however, this would cause a decrease in net revenues available for education or an increase in school taxes for ratepayers to cover the cost. This would increase the property tax of ratepayers and would not be looked upon favorably by the public, unless there was a parallel decrease in municipal taxes. Another alternative could be to have school divisions levy and collect property taxes. However, this would not be necessarily be more efficient or economical for local taxpayers unless they also collect municipal taxes.

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