2015 Mill Rate Roundup

I haven’t posted this info for a while, so I did some homework and found the payable rates for the RM’s surrounding Saskatoon. These are the rates you pay based on the value of your property and the zoning you are located in. There are 8 property classes, but mainly we will be looking at agriculture, commercial, and residential. Those are the only ones I ever see referenced by any of the RM’s so I am not sure what they do in regards to the additional classes.

The Assessment Process and Its Relation to Taxes

SAMA will first determine an assessed value for properties.  After that, a provincial government tax policy is applied.  The policy multiplies a percentage formula against the assessed value, producing what is called the taxable value.

Provincial Property Classes and Percentages of Value

(A)Agriculture                    55%                  (P) Railway             100%
(N) Non-arable (Range)        40%             (R) Residential        70%
(B) Commercial                   100%              (M) Multi-unit           70%
(E) Elevators                      100%                (S)  Seasonal          70%

You can see by the numbers, some classes get a break. Ag at 55% and range at 40% being the lowest. You could call residential a break at 70%, but that’s hard to do since, well,  you’ve seen your tax bill. The assessed values are in many cases 100x greater than ag, as you will see below.

RM Mill Rates

mill rate roundup Nov 2015 2_1
You can see from this that the highest mill rate is in Blucher, but they have the lowest payable residential rate.They use a factor of .5 for residential. Meaning all residential property pay half the RM mill rate. A similar factor is used in Corman Park of .8 for residential. This lowering of the mill rate is countered with a raised factor for agriculture and commercial. This is because of the extremely high assessments for residential vs the extremely low assessments for agriculture.

Let’s look at a simple example. So SAMA says your property is worth $100,000. If it is residential, we can see above that residential property class is taxed at 70% of the assessed value. So $100,000 x .7 = $70,000. That is your taxable value. You pay the residential mill rate of your RM based on that 70k, plus the education mill rate based on 70k.

Take that 70k, multiply it by the mill rate, then divide by 1000, and you have your tax bill owing to the RM.

So in Aberdeen on 100k residential would look like this.
100000 x .7 = 70000
70000 x 7 = 490000
490000 / 1000 = $490 payable to the RM of Aberdeen (not including education tax)

In Aberdeen the mill rate is the same for agriculture land value so they pay the same mill rate, but only on 55% of the assessed value instead of 70. So the equation is:
(land value) x (.55) x (mill rate) / 1000 = $owed

The (not so) funny thing is, the ag land next to me is valued at $412.50/acre while the residential land next door is valued at over $25,000/acre. Over 60x the value! South of me the grazing land is valued at $244.38/acre, less than 1% of the value of the same land across the street. Sure it’s 160 acres vs 5 acres, but the total real life tax bill for an empty 5 acre lot (with a low assessment of 125k) vs 160 acres (actual assessment of 39k)  across the road is $612.50 ($122.50/acre) vs $109.48 (68 cents/acre). That is .055% per acre value.

In Blucher 100k residential would look like this.
100000 x .7 = 70000
70000 x 4.3677 = 305739
305739 / 1000 = $305.74 payable in the RM of Blucher (not including education tax)

 

2015 Education Property Tax Mill Rates

The Government of Saskatchewan has set the 2015 Education Property Tax (EPT) mill rates to be levied with respect to every school division and property tax for the 2015 taxation year.  The 2015 EPT mill rates are the same as in 2014.

For 2015 the Prairie Spirit (Public) School Division #206 and the St. Paul’s R.C.S.S.D. #20 Greater Saskatoon Catholic Schools will both continue to use the education property tax mill rate established by the province as follows:

  • 2.67 mills for agricultural property classes
  • 5.03 mills for residential, seasonal & multi-unit property classes
  • 8.28 mills for commercial/industrial property classes;
  • 11.04 mills for resource(oil and gas, mines and pipelines)

The taxes get even more out of sync here. The mill rates for ag are almost half of residential. That same empty lots previously noted are now $41.75 owing for the farmer, and $440.13 for the residential owner payable for education tax.

It is time for Aberdeen and Dundurn to use mill rate factors to help out the acreage owners there and come on par with other RM’s. Ag gets a break on tax, and this is understandable and I don’t have a problem with that. Not only the lower tax class, but also a lower mill rate on the educations side. Add the shockingly low assessments and it is just unfair. Especially when I see that land up for sale for 1 million dollars. My property is worth less than that yet I pay $6000, they pay $150. They are taking advantage of acreage dwellers and it’s time for our greater population to speak up.

Rant over.

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