How does assessment and taxation work?
Each building on your property receives an assessment class, depending upon its use. It is possible for a building to have two or more uses and therefore fit into more than one category.
Assessment Classes for Rural Municipalities in Saskatchewan
- Agriculture
- Residential
- Commercial
Agricultural buildings are defined as those buildings having to do with a farming operation. These will receive an "exempt" assessment and therefore will not be taxed. These are generally also exempt from building bylaws but are not exempt from the zoning bylaw.
Agricultural buildings include barns, grain bins, and other out buildings, but do not include houses or other residential structures.
Residential buildings associated with farming operations are exempt from taxation to the value of the 293 exemption (see information on 293 exemption RM of Snipe Lake No. 259 - Property Taxes and Assessments. Residential buildings not associated with farming operations are assessed and taxed under theresidential property class. Currently a mill rate factor of 1 applies to residential buildings and land that are taxed.
Commercial properties are those assessed and valued as commercial. A mill rate factor, currently 2, applies to commercial buildings and lands.
What does this mean?
If your taxable assessment is $500,000 on a commercial building, the municipal taxes would be $500,000 x Mill rate (currently 12) x Mill Rate Factor (currently 2)
$500,000 x 12/1000 * 2 = $12,000 for the year. School Taxes also apply.
Oil and gas equipment of all types are commercial.
The taxable assessment is calculated by the Saskatchewan Assessment Management Agency (SAMA) has compiled using the classification percentage of value, exemption status, and assessed value of your property. The assessed value of the property is also determined by SAMA and considers many factors including but limited to completion, quality, location, and market value.
(as of 2024-08-14)