The House of Commons has voted unanimously to amend the Saskatchewan Act to ensure Canadian Pacific Railway is not exempt from provincial taxes.
The railway has sued the province for $341 million in taxes it paid since 2002, saying it should be exempt because of a contract that became part of the Saskatchewan Act when the former territory became a province.
Last fall, the Saskatchewan legislature unanimously approved a motion to ask for the constitutional amendment.
The province said CPR’s tax exemption from 1880 was rescinded in 1966 in a letter from the then-president of the railway company to the federal transport minister.
Regina-Lewvan Conservative MP Warren Steinley introduced the motion in the Commons in December and it passed earlier this month. It now moves to the Senate.
Saskatchewan justice minister Gordon Wyant thanked the MPs who supported the motion.
“This change will ensure that all Saskatchewan taxpayers, both citizens and businesses alike, continue to be fairly treated and bear responsibility for provincial taxes which support our provincial infrastructure and economy,” he said.
