There aren’t too many issues certain farm groups agree upon, but the level of education tax on property is one of them.
Last week a coalition of six organizations said the property tax burden on farmers is too high and it’s time the Saskatchewan government did something about it.
Representatives from the Saskatchewan Stock Growers Association, Saskatchewan Livestock Association, Saskatchewan Wheat Pool, Western Canadian Wheat Growers Association, National Farmers Union and the Saskatchewan Association of Rural Municipalities met with premier Roy Romanow to present their idea on how that could be done.
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The coalition proposed that education tax on agricultural land be capped at the 1999 level, and then reduced by 15 percent every year until 2010.
Delbert Schmidt, spokesperson for the group, said the tax is about $150 million. Total reductions would drop that to $30 million.
Schmidt said the group wants a commitment by June 1.
“We do not want to see a reduction in rural Saskatchewan of the quality of education out there,” he said. “We want to work with the government to come up with solutions to find out alternate funding to the reduction.”
Schmidt said the tax was not unfair 50 years ago when farms were smaller, but larger farms, falling incomes and property reassessment have combined to put farmers in a precarious financial position.
“When you see families out there that are struggling very hard to try to make a living and yet they’re expected to pay thousands of dollars in education tax that they don’t have, you’ve got to understand one thing – pretty soon those families aren’t going to be out there,” Schmidt said.
He said property reassessment two years ago resulted in education tax increases between 30 and 70 percent “overnight.” Education and municipal taxes now make up about 10 percent of a farmer’s gross income, he said.
Brian Weedon, president of the stock growers, said his education tax went up 74.8 percent due to reassessment. He said farmers and ranchers want to be treated fairly.
Wheat growers Saskatchewan director Greg Douglas said education tax is a disproportionate expense for all farmers given today’s margins.
“We are very united on this issue,” he said of the coalition.
“Most ideological biases have been put aside.”
Dennis Van Der Haegen of Sask Pool agreed.
“It’s a common issue affecting Saskatchewan Wheat Pool members and the members of all the other groups,” he said. “We are committed to working together.”
Most of the coalition members have fought individually for reduction or elimination of the education tax for years. Schmidt said they are six of the most powerful farm organizations, representing virtually all producers, and no government or opposition party can ignore that.
Discuss concerns
Meanwhile, the Saskatchewan School Trustees Association, in a news release, said it understands farmers’ frustration but was surprised by the announcement.
A meeting of the SSTA and urban and rural municipal leaders is planned for May 11.
“We are prepared to meet with these organizations to discuss their concerns and the common ground we share,” said president Debbie Ward. “However, removal of school board access to the property tax base will not be on the table.”
Ward added only the provincial government can change the situation.
