2026-04 Enhanced Municipal Revenue Tools and Fiscal Fairness
Year: 2026
Resolution
Whereas municipalities in Saskatchewan are limited in their ability to generate revenue, relying predominantly on property tax, which places a disproportionate burden on property owners and restricts fiscal flexibility; and
Whereas alternative revenue tools, including taxes and levies for infrastructure have been utilized in other jurisdictions to diversify municipal funding and reduce reliance on property taxation; and
Whereas the collection of provincial education property tax by municipalities imposes an administrative burden without corresponding compensation; and
Whereas removal of the payments in lieu for forgoing electrical generation have resulted in revenue losses; and
Whereas municipalities are required to pay Provincial Sales Tax (PST) on construction projects, further increasing costs and limiting the scope of infrastructure investment; and
Whereas municipal revenue sharing has provided valuable support to Saskatchewan municipalities, and any changes to municipal revenue tools should consider the importance and continued role of revenue sharing in supporting local government sustainability;
Therefore be it resolved that SUMA:
1. Advocate the Government of Saskatchewan to enable municipalities to access alternative revenue options including, but not limited to, new or improved taxation alternatives;
2. Advocate the Government of Saskatchewan to either collect its own education property tax directly or reinstate a grant to municipalities that compensates for the administrative burden of collection;
3. Advocate for the reinstatement of municipal payments in lieu for electrical revenues from SaskPower, restoring a vital source of municipal revenue; and
4. Advocate for the Province of Saskatchewan to exempt municipalities from Provincial Sales Tax (PST) on construction projects, thereby reducing costs and supporting infrastructure development.