Farmers are assessing property tax relief promises now that the three main Saskatchewan political parties have revealed them.
The New Democratic Party and Saskatchewan Party announced their plans at campaign stops in Regina Oct. 15, five days after the campaign for the Nov. 7 vote was officially launched.
Liberal leader David Karwacki announced his party’s plan a month ago.
Only one party has singled out farmers for relief beyond what is currently offered.
Leader Brad Wall used a Regina home as a backdrop to pledge that a Saskatchewan Party government would double the education property tax rebate over the next four years for both homeowners and farmers.
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He estimated that a farmer with 1,280 acres would save about $11,000 over that time period.
The rebate is 38 percent now and would rise to 47 percent in 2008-09, then to 56 percent, 66 percent and finally 80 percent by 2011-12.
The average homeowner would see the rebate, which appears as a credit on municipal tax notices, go from 10 percent to 20 percent. This also applies to commercial and industrial property.
The party pegged the cost of its promise at $280 million over four years.
In comparison, the NDP plan, also announced in Regina, calls for the continuation of the split that sees the government fund an average of 60 percent of Kindergarten to Grade 12 education while property tax pays the remainder.
“Farm families in Saskatchewan have saved over $60 million because of our 60-40 education funding formula,” said leader Lorne Calvert in a News release
news.
Farmers receive the credit on their municipal tax notices.
A re-elected NDP government would replace the existing 10 percent property tax credit with a refundable income tax credit of 30 percent, payable on primary residences beginning in the 2009 tax year.
The cost of this initiative is estimated at $317 million over three years.
The Liberals have pledged to eliminate all education tax on residential property over four years. Karwacki said the $315 million per year cost of that promise would come from economic growth, 25 percent of all oil revenue when its priced above $50 per barrel and redirection of other tax revenue.
David Marit, president of the Saskatchewan Association of Rural Municipalities, said the dueling plans make it difficult for a property tax coalition to take a position during the campaign.
The coalition of six local government, business and taxpayer associations had scheduled a news conference for Oct. 18 but Marit said Oct. 15 the members would first have to assess the party plans.
“Our coalition position is that all property classes be at 40 percent,” he said.
“It’s pretty tough to take a position if some (coalition members) are getting what they want and some aren’t. We may want to postpone our press conference.”
He said farmers were grateful for the relief they received from the NDP government’s rebate program but the Saskatchewan Party plan, taken at face value, appears better for farmers with its 80 percent rebate.
The Saskatchewan Party plan also calls for increasing operating funds to schools and a long-term plan for permanent property tax relief.
The NDP is offering relief to renters and for owners of non-principal residences.
The Saskatchewan Chamber of Commerce panned all the announcements, saying the entire property tax system should be revamped.
Agricultural Producers Association of Saskatchewan president Glenn Blakley said any reduction in property tax is welcome, but must be offset with corresponding funding increases to school boards.
