Property assessment is a key part of the municipal taxation process. Assessment is the process of valuing all properties within a jurisdiction using a specified appraisal technique.
The Saskatchewan Assessment Management Agency (SAMA) is an independent agency bound by provincial legislation that provides property assessment services to Saskatchewan municipalities. The Town of Kindersley’s Assessor works with SAMA to determine reliable assessment values for local properties. Properties are re-assessed every four years. 2013 was a re-assessment year in Saskatchewan.
It is important to recognize that property assessment values may not necessarily reflect market value growth, except when re-evaluation updates occur every four years. When property assessments are calculated, a base date is selected and the assessment reflects the value of the property as it would have existed on that base date.
Once property assessments have been determined by SAMA, Town Council sets a mill rate. A mill rate is the amount of tax paid per $1,000 of assessed property value. Mill rate factors and other tax tools may be used by Town Council to redistribute the amount of total taxes paid by each property class. The Town of Kindersley has three main property classes:
A base tax is a tax tool where a specified dollar amount per unit is added to the municipal portion of each tax bill, regardless of its assessed value.
Mill rates are calculated annually by dividing the Town’s budgeted revenue by the property assessment values determined by the Saskatchewan Assessment Management Agency. The last reassessment was in 2013.
Saskatchewan municipalities also collect education property taxes from property owners, based on tax rates that are set by government. Every Saskatchewan citizen is required to pay education tax. Municipalities must remit these taxes to local boards of education. The Town of Kindersley collects education taxes on behalf of the Sun West School Division. The municipality does not keep any portion of education taxes.
The following formula outlines how the municipal portion of property taxes is determined:
Property tax = (Taxable Property Assessment x Mill Rate x Mill Rate Factor) ÷ 1,000
Discounts on Early Payment
On May 11, 2015, Council adopted the Property Penalties Bylaw 08-15 , which established the current tax penalties and eliminated the 4% discount that was previously applied to tax payments made before June 30 of the tax year.
While the discount offered an incentive for citizens to pay their taxes early, it also provided a loss in tax revenue that needed to be recovered for operations. Many municipalities no longer offer property tax discounts and school divisions throughout Saskatchewan also discontinued the use of education tax discounts in 2013.
Residents were notified in their 2015 Tax Notices that the discount would not exist after July 1, 2015.
When do tax penalties get applied?
Tax payments can be made anytime prior to July 31 without penalty. On August 1, 2016, a penalty of 1.5% will be applied to any unpaid current taxes, as well as on the first day of each additional month the taxes remain unpaid.
Taxes that remain unpaid after December 31 of the year in which they are levied shall be considered in arrears and subject to a penalty. This penalty is 2% per month and is applied the first day of each month that the taxes remain unpaid,
Please note that tax payments can be made any time before tax notices are received. This can be done through online banking, by post-dated cheques, or payments made at the Kindersley Administration Office. For any other payment arrangements, please contact the Town of Kindersley at 306-463-2675.