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   Contact Us
1530 - 1855 Victoria Ave.
REGINA, SK S4P 3T2 E-mail: Muninfo@gov.sk.ca Follow Us on Twitter Program Contacts  Open and Ongoing Programs Grants in Lieu of Taxes on Saskatchewan Government Services Properties2012-2013 BUDGET: $12,300,000 Program Description As part of its 1998-99 Budget, the Provincial Government announced that it would begin payment of grants-in-lieu to municipalities of an amount equal to the general property tax levy for properties owned or managed by the Ministry of Government Services (formerly Saskatchewan Property Management), except for those properties used for health or educational purposes. This new policy took effect with the start of the municipal fiscal year, January 1, 1998. Implementation of these payments was phased in over a four year period. Payments relate to property taxes (municipal, school and library). Payments of grants-in-lieu are based on the property's taxable assessment times the mill rates, including applicable "tax tools". The 1998 payment was based on 25% of a duly levied 1998 property "tax bill". In 1999, the payment was 50%; in 2000 it was 75% and in 2001 the payment was the full amount levied. The payment continues to be 100% of the full amount levied. The provincial government is not actually paying taxes on properties, due to its legislative exemption. Instead, grants are paid in lieu of these taxes and are based on the prior year's tax notices for the property. If the property is sold or becomes ineligible, the grant is discontinued at that time regardless of the tax notice for that property from the previous year. Since the payments are grants, the government is not in arrears on taxes at any time.
Eligibility
Grants-in-lieu (GIL) payments relate only to properties owned or managed by Government Services (GS) (including vacant land). Health facilities, educational facilities and museums currently owned or managed by GS are exempted from a GIL payment. (Examples - SIAST, regional colleges, Crown-owned Health Institutions, Health District occupied facilities and regional care facilities) In 2002, provincial museum properties were added to the list of excluded properties; this includes Regina's Royal Museum and Government House. GS has responsibility from a technical perspective in the review of actual assessments, appeals (if required) and the recommendations for payment associated with GS owned and managed property. GS has contact with municipalities to determine which properties qualify and their assessed values with the exception of formal policy decisions as required to be made by Municipal Affairs (MA). In this case, MA will communicate the results of the decision to the municipality and all communications from the municipality will be made back to MA. GS will be copied on such communications. An example of this situation is when there is a property that GIL was paid on and a decision is rendered to no longer pay on that type of property.
Payments will be made on previous year tax notices. Procedures
The municipality submits a tax notice to GS, providing a breakdown of the assessment into land and building(s) components, with a separate assessment for each building on a particular site. If any information is missing, GS contacts the municipality. The tax notice must contain information regarding any tax tools that are employed by the municipality and how the application of the tools affects the property. GS determines whether there have been any policy changes in the past year. If there have been policy changes, information on the affected property(ies) is sent to MA who makes a determination on eligibility and informs the municipality if there are any changes. GS checks the eligibility status of each property (new properties, ownership or tenant changes). Any changes are shared with MA. GS monitors significant changes in taxable assessment of a property prior to receipt of the tax notice. Prior to submission of the tax notice, municipalities submit assessment notices to GS if there are any changes in the assessed value of the property. If there is a significant change on the assessment notice, GS may request field sheets indicating the date of the last physical inspection. If there are any questions as to the assessed value, GS will contact the assessor and/or Saskatchewan Assessment Management Agency (SAMA) and may, if the value cannot be agreed to otherwise, appeal to the local board of revision. Any changes are communicated to MA. GIL payments are based on policy rather than legislation. Timetable
GS attempts to follow the legislated timelines for review and verification of the municipal assessment information; however, some flexibility may be needed depending on the circumstances. GS receives and processes municipal tax bills for payment of GIL throughout the municipal taxation year. Payments are made through the Ministry of MA, Grants Administration and Financial Management, electronically to municipalities' accounts by June 30th of the following year.
Questions regarding eligibility of properties in the municipality, contact:
GIL Coordinator
For technical and property related matters contact:
Alf Bernstein, Director
For program information and payment tracking contact:
Sheri Gabel, Program and Policy Advisor
Other Provincial Grants in Lieu Some provincial Crown Corporations also pay grants in lieu or franchise fees on their properties. MA is not involved in these payments and does not have information on payments to individual municipalities. Inquiries about Crown Corporation grants in lieu or franchise fee payments should be directed to the Crown Investments Corporation or the individual Crown corporations. For more information on GIL for Crown corporations, please contact SaskEnergy (306) 777-9307, SaskTel at (306) 777-5954 , SaskPower at (306) 566-3007.
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