Resolutions

Whereas prior to the 2017 provincial budget, municipal construction projects were exempt from paying provincial sales tax; and

Whereas both SUMA and SARM have carried previous resolutions requesting that the provincial government reinstate a PST exemption on municipal construction projects; and

Whereas the response from the provincial government to these resolutions is not clear and does not provide a definitive “yes” or “no” to the requests; and

Whereas municipalities continue to face a growing infrastructure deficit, as evidenced through a myriad of industry and quasi-government sponsored studies; and

Whereas SUMA supports the province in its efforts to develop new initiatives aimed at ensuring the infrastructure deficit is effectively reduced through the rehabilitation/ renewal of existing infrastructure.

Therefore be it resolved that SUMA advocate the Government of Saskatchewan to develop a Municipal Infrastructure Rehabilitation/Renewal Grant Program, to be funded from the PST collected by the Government of Saskatchewan through the payment of PST for labour on municipal construction projects.

Background:

Previous approaches by both SUMA and SARM to encourage the provincial government to provide specific financial relief from payment of provincial sales tax for municipalities in our continuing efforts to complete needed municipal construction projects have thus far been unsuccessful. The arguments made for this are, and continue to be, predicated on the challenges faced by all municipalities in our efforts to address the known infrastructure deficit.

This infrastructure deficit was previously highlighted in the 2019 Canadian Infrastructure Report Card within which the Canadian Public Works Association and the Federation of Canadian Municipalities were contributing sponsors.

This resolution seeks to continue SUMA’s advocacy of its previous initiative by focusing the ask on a reduced, and more tightly defined, construction cost component. In addition, this resolution encourages the provincial government to develop an immediately defensible and strategic opportunity to further showcase its support of municipal infrastructure renewal.

Acts affected: The Provincial Sales Tax Act

Sectors/Regions affected: ALL

Thank you for your May 1, 2025, letter regarding a resolution made at the Saskatchewan Urban Municipalities Association's 120^th Annual Convention with respect to the development of a Municipal Infrastructure Rehabilitation/Renewal Grant Program which would be funded from the provincial sales tax collected from the labour on municipal construction projects.

Our government has been lobbying the Government of Canada for an aggressive new municipal infrastructure cost-sharing program similar to the Investing in Canada Infrastructure Program, and I am cautiously optimistic that something will be announced in the upcoming federal budget.

I am pleased to note that in 2025-26 this government will distribute $361 million to Saskatchewan municipalities through the Municipal Revenue Sharing program, an increase of $234 million, or 184 per cent over 2007-08. This level of commitment aligns with our promise to develop a long-term revenue sharing plan with the municipal sector that is linked to the performance of the province's economy.

As has been previously noted, Saskatchewan's provincial sales tax is a tax of general application, applied to a broad base of goods and services. This broad application ensures that a fairly applied, reliable and sustainable source of revenue is available to finance the many public services provided by our government, including grants to the municipal sector, health care and education.

Thank you for providing me with the opportunity to comment on this resolution.

Sincerely,

Jim Reiter

Deputy Premier and Minister of Finance