Yorkton Council set the 2020 mill rate at its regular meeting Monday.
In addition, exemptions, abatements and reductions were also unanimously approved by bylaw passage.
As background the 2020 budget was approved December 16, 2019 with a 2.9 percent increase in tax revenue, explained Ashley Stradeski, Director of Finance, with the City.
It was determined it would be best to apply a 60/40 split of the tax increase to residential / commercial property classifications, said Stradeski.
Analysis of the distribution of tax revenue collected between various sub-classes determined that implementing a 60/40 split would not skew the tax increase towards commercial more than it already has, he explained.
Sixty per cent of the taxable assessment is represented by residential taxpayers, with only 40 percent being commercial and its various sub-classes.
By placing this split, the increase will be spread out more evenly across taxpayers, while placing less of the burden on commercial payers, offered Stradeski.
Actual increases will vary by property.
The average commercial property in Yorkton is valued at $500,000 and will see city property taxes climb $257.50, or $21.46 per month.
The average residential property value sits at $250,000, and will see taxes rise $86.25 or $7.19 per month.
Councils may also reduce property taxes or exempt any property from taxation in whole or in part with respect to a financial year. Various city policies provide tax incentives that require Council approval. These incentives must receive Council approval on an annual basis.
The abatements included what is being termed the 2019 Hotel Assessment Model abatements.
In 2019 SAMA implemented a mid-revaluation of the assessment model for hotels. The new, higher values, initiated new rounds of assessment appeals.
Administration proposed a tax abatement to address the lack of continuity in hotel valuations, and the substantial tax swings that resulted. The formula for the abatement lowered their taxes to the same level as 2018, and the 2.9 percent increase for 2019 and 2.9 percent for 2020 has been added to that value.
As the property values are still in flux, Administration proposes applying the same formula for 2020. Again, we will be in a better position to observe the outcome of ongoing appeals without putting further city funds at risk. This also provides consistent taxation both for the city from a revenue standpoint and for the taxpayers.
Council approved its Tax Cancellation Bylaw for 2020, relating to the hotels, covering six properties, and total taxes of $318,521, $242,551 being the municipal share if taxes. The numbers are the same as 2019, plus the 2.9 per cent increase in taxes for 2020.
Other abatements included continuation of two five-year abatement with Greening Source Holding Ltd relating to tax exemptions under the Rental Housing Incentive Program.
In 2019 Council also approved a request by Yail Harbor to enter into a five year agreement for a 100 percent tax exemption on the properties at 81 & 85 Rae Avenue. The group homes operating out of these two properties do not qualify for exempt status under The Residential Service Act due to the lack of 24 hour staffing. The property is, however, adjacent to another group home owned and operated by Yail Harbor at 89 Rae Avenue. This group homes is staffed 24 hours, and by utilizing the staff from this location to service multiple homes, they have kept costs down, by utilizing the staff from one location to service multiple units. Given that these two properties are very similar to those that enjoy group home status, (and are exempt from taxation); Council has chosen to abate the taxes on these properties. The abatement is in effect from 2019 to 2023.
The abatements combined come to $38,998 in taxes.
