REGINA — The City of Regina is collaborating with the Saskatchewan Urban Municipalities Association (SUMA) to enhance revenue tools and fiscal fairness.
During a special council meeting on Thursday, councillors unanimously voted to request the “Province of Saskatchewan to consider enabling municipalities to access alternative revenue options, including but not limited to new or improved taxation alternatives.”
Regina Mayor Chad Bachynski said it's not sustainable for municipalities to use their main source of revenue from property taxes.
SUMA has also previously expressed concern over municipal revenue sharing.
“For every $100,000 a municipality pays in PST, only $12,500 makes it back into the pool, where it is then spread out over the entire municipal sector,” according to SUMA's a document.
The situation was made worse when the PST exemption on construction labour was removed, according to SUMA.
“[This cost] the municipal sector approximately $29 million annually,” they noted.
City council also requested to remove PST from construction projects, “hereby reducing costs and supporting infrastructure development,” noted the motion.
SUMA is hopeful the government can remove PST on construction “[so] municipalities may reallocate these saved dollars to better provide municipal services and infrastructure, while limiting increases to property taxes.”
Bachynski noted that SUMA is having an ongoing dialogue with the Federation of Canadian Municipalities.
SUMA is holding its annual convention, where leaders meet to discuss pressing matters in April.
