Taxes

The Town of Wolseley raises most of its revenue through property taxes. The information below is for reference only and some is copied directly from the Provincial Government’s website.

“Your Council is elected to make decisions that they consider appropriate and in the best interests of the municipality. These decisions may be based, in part, on your expectations as well as those of other citizens, and in part, on the judgement of the member. Tax policy, whether the municipality chooses the ad valorem method of taxation or to utilize one or more of the available tax tools is almost certain to generate discussion. Questions regarding the tax policy in your municipality should be directed to your mayor, reeve and members of council.” – Government of Saskatchewan

Assessment Based Taxation

Tax calculation can be very complicated and is based on numerous factors. To begin with, taxes are based on the taxable portion of your property’s assessed value. Property assessments are performed by SAMA. Please review the section on assessments for more information.

How does the Town choose tax rates?

A municipality must first pass a budget before they set their tax rates. Why is this? First they have to decide what core services they intend to provide, and review what the costs of those services are. Additional costs for capital upgrades, etc. are then added to the budget.

Council then reviews where the revenue to cover the budgeted expenses will be coming from, sometimes reducing expense lines to reduce the revenue required.

Revenues can come from many additional sources such as:

  • user-pay fees (for activities and programs to help reduce the tax payer burden and cover some expenses for the facilities the events/activities take place in).
  • municipal reserves (often these are dedicated reserves for things like infrastructure upgrades or capital purchases).
  • the Federal and Provincial governments (in the form of grants-in-lieu of taxes and revenue sharing).
  • other forms of revenue such as rent/lease agreements, grants, etc.

Because a large portion of the municipal revenue to pay for expenses comes from the other levels of government, the Town will generally wait until the federal and provincial budgets have been released before it finalizes its own budget. If a large change to the anticipated amounts we will receive occurs in a federal or provincial budget, it will directly effect our budget. Council must decide whether to reduce expenses (and often services) in that year, increase funds, pull from reserves or increase the tax rate to cover the difference.

How are taxes calculated?

Initial property taxes are calculated using the ad valorem method of taxation meaning that your property taxes increase proportionately with the value of your property.

This is the taxable portion of your assessment multiplied by the mill rate divided by 1000. Tax tools may then be used to redistribute the cost of public services within the tax base. Council may adjust taxes using these tools for properties based on whether they are classed as residential, agricultural or commercial/industrial, and also depending on whether you have land or land with an improvement (home, garage, etc.) on it. Tax tools may only be applied to municipal property taxes, not education taxes.

Education Property Taxes

Your tax bill will include both municipal and school taxes. The education (school) portion of your taxes are set by the province. The municipality does not make adjustments to the school portion of your taxes as these are legislated by the province. There may also be other special taxes or improvement levies set by a municipality which could affect the total amount of your tax bill.

What are tax tools?

Municipalities have three tax tools available to them that can be used individually or in various combinations: Mill Rate Factors, Minimum Tax, and Base Tax.

Mill Rate Factors: A municipality may use mill rate factors to transfer some of the cost of public services from one property classification to another. All property in a municipality is classified as agricultural, residential or commercial. Mill rate factors essentially adjust the mill rate, with the result that the effective mill rate for a specific property classification may be higher or lower than other property classes.

Minimum Tax: A minimum tax may be established to increase the amount of taxation revenue generated from lower assessed properties within one or more property classes. Minimum tax will generally be a specified value or amount; however, it may also be expressed in a formula. This tax policy will reduce the overall mill rate which will benefit properties with higher assessed values and reduce the gap of tax burden between the lower assessed and higher assessed properties.

Base Tax: A base tax may be applied to all properties within one or more property classes. Base tax will be a specified amount. A base tax will lower the tax rate reducing the difference in property taxes between lower and higher assessed properties.

The Town of Wolseley uses a combination of minimum tax and mill rate factors.

2023

Mill Rate: 14.1

(used to calculate the ad valorem tax)

Mill Rate Factors:

Agricultural: 1.0000
Residential: 1.0000
Commercial/Industrial: 1.1500

Minimum Tax:

NOTE: Where a property is assessed under more than one property class, only a single minimum tax will apply, whichever is the higher of the assessed classes.

Agricultural, Residential and Commercial/Industrial:

Land: $750
Property: $1,000

Example Calculations

Municipal taxes are calculated using the following formula:

AD VALOREM CALCULATION: (Taxable Assessment / 1000 x Mill Rate) x Mill Rate Factor

COMPARISON: The above ad valorem calculated tax rate is then compared to the Minimum Tax Rate. The property is then levied either the Calculated Ad Valorem tax rate OR the Minimum Tax rate, whichever is higher.

ADDITIONS: Any school taxes, special taxes, or property improvement levies applicable are added on top of the applied tax rate.

RESIDENTIAL EXAMPLE 1: Calculated Tax Applies

A residential property assessment (taxable portion only) is $150,000 (property with improvement (house, garage, etc.)).

Ad Valorem Calculation: $2,115.00

  • (Taxable Assessment / 1000 x Mill Rate) x Mill Rate Factor
  • ($150,000 / 1000 x 14.1) x 1.0000 = $2,115.00

Minimum Tax: $1,000.00

Amount Levied : $2,115.00 (since the calculated tax is higher than the minimum tax, the ad valorem calculated tax is applied)

RESIDENTIAL EXAMPLE 2: Minimum Tax Applies

A residential property assessment (taxable portion only) is $50,000 (property with improvement (house, garage, etc.)).

Ad Valorem Calculation: $705.00

  • (Taxable Assessment / 1000 x Mill Rate) x Mill Rate Factor
  • ($50,000 / 1000 x 14.1) x 1.0000 = $705.00

The Minimum Tax for residential property with improvement is $1,000.00

Amount Levied: $1,000.00 (since the minimum tax is higher than the calculated tax, the minimum tax is applied)

COMMERCIAL EXAMPLE

A commercial property with an assessed value (taxable portion only) is $181,700 (property with improvement (shop or building, etc.))

Ad Valorem Calculation: $2,946.27

  • (Taxable Assessment / 1000 x Mill Rate) x Mill Rate Factor
  • ($181,700 / 1000 x 14.1) x 1.1500 = $2,946.27

Minimum Tax: $1,000.00

Amount Levied: $2,946.27 (as the calculated tax is higher than the minimum tax, the calculated tax is applied)

Economic Development Program

The Town of Wolseley offers a tax incentive program for those who wish to build or move-in a new home into our growing community. The program abates 100% of the municipal portion of property taxes in the first year, and 50% of the municipal portion of property taxes in the second year. First, land owner(s) must submit a Building Application Permit to the municipal office for review and approval by the appointed Building Official. Upon approval and receipt of the Permit Application Fees, the home owners are then eligible.

To apply, Council asks that you submit a request for the Economic Development Program and upon approval, a Bylaw with attached Agreement will be drafted between the assessed owner(s) and the Town of Wolseley.

PLEASE NOTE: This program does not waive the Education Property Tax portion of your property taxes.

Important Reminders

  • Your property tax bill covers the period from January 1 to December 31 in the year they are levied
  • Property taxes are due December 31, but can be paid at any time during the year (i.e. prepaid)
  • A 2.0% penalty is added per month to any unpaid balance after December 31. If still unpaid, tax enforcement proceedings will commence as per The Tax Enforcement Act.
  • All charges on a tax roll become the responsibility of the registered owner of the property.
  • Non-receipt of your property tax notice does not exempt you from penalty due to late payment.
  • If you do not receive your tax notice by August 31, please contact the Town Office at (306) 698-2477 or email townofwolseley@sasktel.net
  • Payment for Property Taxes can be made by Cash (in-person), Debit Card, Credit Card, Cheque, or Internet Banking.
  • You cannot appeal your taxes or your tax rate, you can only appeal your assessment and only when the assessment roll is open can you appeal.