Brody Langager
Saskatoon StarPhoenix
Saskatoon’s property tax burden could see some businesses taking on more of the load if city council goes forward on Wednesday with a recommendation.
A report from administration to council recommends that the non-residential to residential property tax ratio be adjusted, so businesses pay $1.75 for every dollar paid in property tax by residents. That’s an increase from the current policy ratio of businesses paying $1.63.
This doesn’t mean the city would see more money generated from property tax revenues, but it would see businesses having to cover a higher ratio of that same amount.
Median single-family residential properties would see a property tax increase of $275 annually if the rate stayed at $1.63, the report said. It added that a typical retail property would see rates decrease by $646 annually, and gave an example of a hotel property seeing that tax burden drop by just over $9,260 annually.
“These results are reflective of both a change in median assessed values and distributing the budgetary tax in accordance with the proposed ratio,” the report said.
Different cities take different approaches to their tax ratios, the report said, adding that this is a value judgement where the city needs to assess the tradeoffs.
Tax ratios were compared between prairie cities in 2024, with Regina holding the lowest tax ratio for businesses, sitting at $1.46. Winnipeg had a rate of $1.97, Red Deer $2.12, Lethbridge $2.56, Edmonton $2.96 and Calgary had a rate of $4.37.
Five options are on the table for council’s consideration:
• Increasing the rate to $1.88, which city administration said would be a revenue neutral ratio;
• Increasing the rate to $2.13, which would put Saskatoon at the midpoint relative to the other prairie cities mentioned;
• Set the rate to $1.75, which was the rate set after the 2017 property revaluation cycle;
• Maintain the rate at $1.63;
• Drop the rate to $1.43, which was proposed by the Greater Saskatoon Chamber of Commerce.
City administration said a $1.75 rate is still among the lowest in Western Canada, adding that many businesses will still see a decrease in their actual taxes paid compared to 2024.
“The 2025 results are reflective of the economic distortions created by the COVID-19 pandemic,” the report said. “Some property types have seen substantial value drops, especially some of the highest valued properties (in retail and office). It is hard to predict whether these lower declines will turn quickly or slowly, given the imminent threat of U.S. tariffs on Canadian exports and any retaliation efforts provided by the Canadian government.”
