Yorkton Chamber of Commerce president Marty Sveinbjornson appeared before the regular meeting of Yorkton Council Monday to voice member concerns regarding property assessment.
鈥淭he Board of Directors of the Yorkton Chamber of Commerce is greatly concerned that when the 2021 property assessment notices arrived last month, several of our business members received very large increases in their assessments.鈥� he told Council.
鈥淲e have learned of business property assessments increasing by as much as 44 per cent, 68 per cent, 71 per cent, and 86 per cent.鈥�
Sveinbjornson did acknowledge 鈥渙ne of these properties underwent renovations so an increase in assessment was expected.鈥�
But therein lies another concern.
鈥淗owever, a huge increase in assessment could be construed as a penalty or disincentive for trying to improve one鈥檚 property,鈥� offered Sveinbjornson.
In any circumstance increased assessment means added costs.
鈥淥f assessment.鈥�
If something is not done, it could push some businesses away, warned Sveinbjornson.
鈥淪ome of our members are contemplating options to operating within the city limits,鈥� he said.
鈥淒o they shut their doors in Yorkton and move to the RM; or another town or city?
鈥淚f any of these businesses choose either of these options, it will be a blow to the city in terms of the potential loss of employees and their families and certainly, a loss of tax revenue.鈥�
The solution seems to be change, said Sveinbjornson.
鈥淕oing forward, and before the next revaluation, the City must find a way to ensure these property assessments more accurately reflect the true value of commercial properties,鈥� he said.
鈥淭he City must also strive to create an environment that welcomes new business and encourages existing businesses in Yorkton to thrive and prosper.
鈥淎 strong business community makes for a healthy community. You must find a way to ensure our businesses are not 鈥榯axed to death鈥�.鈥�
Councillor Quinn Haider began discussion by saying 鈥淚 feel for these business owners,鈥� and then asking if the City has tax tools to mitigate the largest increases.
Ashley Stradeski, Director of Finance with the City, began by suggesting 鈥渋n a perfect world there wouldn鈥檛 be swings like this.鈥�
Stradeski also said 鈥渁ssessment values are out of everybody鈥檚 control in this room,鈥� as they are established by the Saskatchewan Assessment Management Agency (SAMA).
Stradeski said ultimately the City, with a zero per cent increase in taxes in 2021, will be looking to generate the same dollars as in 2020, adjusting the commercial and residential taxes based on the new assessments to achieve that. However, that will mean some p
course, such increases will ultimately result in large increases in the annual tax bills for these properties,鈥� said Sveinbjornson.
鈥淔urther, it鈥檚 very difficult for a business to budget for property assessment increases and tax increases when the notice of the new assessment arrives after the first quarter of the fiscal year for many of these businesses.鈥�
The way taxes are applied was also touched on by Sveinbjornson.
鈥淚t has also been pointed out that commercial properties carry more of the tax burden than do residential properties,鈥� he said. 鈥淪uch large tax bills certainly put our Yorkton businesses at a competitive disadvantage as comparable businesses in neighbouring communities are paying much lower taxes.鈥�
That said, Sveinbjornson noted taxes are accepted as something that is needed.
鈥淭he Chamber understands that properties need to be assessed to develop a tax strategy,鈥� he said.
鈥淗owever, the Chamber urges the city to find ways to mitigate the tax bills for these businesses who have received large increases in roperties will see their taxes go up and others down while achieving a net zero overall increase.
What the exact tax changes might be will be determined as the City sets its mill rates, expected at the next regular meeting of Council, said Stradeski.
Stradeski said while it is 鈥渁 very general statement鈥� the average assessment has gone up roughly 25 per cent, and anyone who sees that average 鈥渁re not going to see major changes鈥� in the property tax they will pay.
However, Coun. Ken Chyz said the high increases noted by the Chamber 鈥渁re nowhere near the highest,鈥� adding he has personally been made aware of one property where the assessment went up 100 per cent.
Coun. Randy Goulden said there are obviously concerns with assessment and the Chamber and the City need to be making their concerns known to SAMA which is beginning the process already toward the next reassessment in 2025.
Mayor Mitch Hippsley assured the issue is far from dealt with.
鈥淭his is far, far from being over,鈥� he said, adding some of the increases are very high and need to be looked at more closely as the City finalizes its mill rate.
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