RMs reject tax sharing

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Published: November 28, 2002

Ken Will won’t be counting on any money for road repairs from his

neighbouring rural municipality any time soon, even though traffic to

his neighbour’s grain terminals is damaging his roads.

Will is a councillor for the RM of Bjorkdale that brought a resolution

to the Saskatchewan Association of Rural Municipalities convention held

in Saskatoon Nov. 14-15. It asks the province to legislate tax sharing

between municipalities that have grain terminals and those who do not

but whose roads carry the traffic.

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“We don’t have a single elevator in the RM any more. They are all in

Tisdale. One is only a mile and quarter inside the boundary. They

collect all the taxes on three concretes and we get none. But our

farmers have to deliver on our roads. Truckers use our roads to get to

their terminals, and we get no tax revenue,” said Will.

Allan Brigden of the RM of Brock opposed the idea even after backing a

pair of earlier resolutions that dealt with grain transport and road

wear.

“We only have 400 delivery points today. Twenty years ago it was 3,000.

That’s a lot of load focused on a few miles of road and the province

needs to help us increase our compensation in the volume distance

rate,” he said during the earlier debate.

He said the province also need to create legislation allowing RMs to

establish truck routes, “just like in the cities.”

Viola Bell of the RM of Invermay said hog developments in her area “are

beating our roads to death. They don’t pay proper compensation for the

damage through taxes and in some cases they just pass through us from

others (RMs) … we need to solve this road damage problem fairly.”

Will agreed with Brigden and Bell on both counts, but said

municipalities with terminals and the tax revenue should be prepared to

share.

Brigden disagreed.

“We worked to attract these terminals. We gave them tax concessions.

Revenue sharing would just socialize the whole thing. Potash, oil,

pulp, should we all share that tax revenue too? I don’t think we want

to socialize our tax revenues,” he said to the 900 delegates.

Despite agreement from many RMs that grain is not paying its share for

roads, it was not enough to win the argument and the resolution for tax

sharing was defeated.

SARM president Neal Hardy said the debate has been raised before and

was defeated by only a few votes during the 1999 convention.

“Today it was much clearer. The message was the majority didn’t want to

share their tax revenues from grain or anything else,” Hardy said.

About the author

Michael Raine

Managing Editor, Saskatoon newsroom

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