REGINA — The City of Regina is taking the first steps towards implementing phase-in taxes for the next tax cycle.
In a unanimous vote, council approved administration to consider $79,000 annually between 2026 to 2029 from the city’s elections and property reassessment reserve to support the phase-in tax capability for the next tax cycle in 2029.
Several councillors expressed support for phasing in taxes, including Mayor Chad Bachynski, Ward 5 Coun. Sarah Turnbull and Ward 6 Coun. Victoria Flores.
A phase-in tax works by gradually decreasing or increasing taxes based on property revaluations, according to the province.
For example, if a property’s taxes change from $1,000 to $600, the owner would see $100 decrease in their taxes each year. Vice versa, a property’s value increasing from $600 to $1,000 would see the owner pay an additional $100 each year.
Currently, the city operates phased-in taxes for commercial properties.
Daren Anderson, City of Regina chief financial officer, said administration would be supportive of a phase-in tax for residents, given enough time to notify residents and figure out the financial logistics.
City council will finalize the decision on the $79,000 during 2026/2027 budget deliberations.
Base and minimum tax
In a 9-2 vote on Wednesday, city council approved referring a motion to utilize a base tax and minimum tax as part of upgrades to Regina’s Tax and Assessment System (TAS) software.
While presenting his motion, Ward 4 Coun. Mark Burton said the ability to pay taxes isn’t always reflected in one's house choice.
“At the bottom end or middle, people make choices and can choose to buy less expensive houses, thus may not reflect their ability to pay.”
Burton said he personally knows people in lower-property-value neighbourhoods who can pay more taxes.
A minimum tax will increase the taxation revenue generated from lower assessed properties within one or more property classifications, according to the province.
If a minimum tax is $400 for a city and a property’s tax is $130, the owner would pay $400. Vice versa, if a property’s tax is $500, the owner would pay over the minimum tax threshold, says the province.
As for a base tax, the province's website mentioned it's a designed amount which will reduce the difference in property taxes for lower and higher assessed properties.
A municipality can set rates of a base tax for different properties (residential, commercial, etc.), and the base tax would be added after calculating the property’s value times the mill rate set by the area.
It’s worth noting that Burton’s motion did not suggest implementing either tax, as he suggested that would be a future decision.
However, other councillors voiced opposition to implementing different tax tools.
Ward 3 Coun. David Froh referenced a study done by city administration in 2021, which found that implementing a $500 base tax would cause 25 per cent of homes, 55 per cent of renters and 75 per cent of condos in Regina to see a tax increase.
“I think at a time of economic uncertainty, and shrinking disposable income, what we don’t want to do is push people further down, we want to give them a hand up.”
Meanwhile, Ward 7 Coun. Shobna Radons said a base tax is “digressive and regressive.”
“People should not be penalized for their earnings and where they choose to live,” she added.
Anderson said any additional research done by administration would lead to similar numbers presented in their 2021 study of a base tax.
Council referred the motion to its Nov. 19 meeting.
