Saskatoon business owner says property tax increase latest challenge
Cole Thorpe, who owns retail store Prairie Proud, has been working hard to keep his business going during the pandemic and says curveballs in the city’s 2022-2023 budget make it even harder.
“As a small business owner, whether it’s been COVID restrictions, supply chain challenges and now property tax increases, it just seems like we’re continually getting hit with challenges,” he said.
After three days of deliberations, city council approved a 3.86 per cent property tax increase for next year and 3.53 per cent for 2023.
For commercial properties, that amount will be even higher as they are expected to pay a ratio of 1.59 more on top of that.
Clae Hack, the chief financial officer for the City of Saskatoon, said the rate is still competitive with other cities like Edmonton and Calgary.
“I think through council’s review and what we approved, it still holds Saskatoon as one of the lowest commercial property tax rates in western Canada and in my opinion, we get some nice services for those dollars as well,” he told CTV News.
Utility rates for water and wastewater usage are also set to go up in 2022 and 2023 by 2.5 per cent and 3.4 per cent respectively.
For Thorpe, the increase means his business will have to pay more in rent for its occupancy cost, which is tied to the property tax.
“Any cost increase as a small business right now is challenging based upon the fact that there’s just no guarantee on revenue. We’re very much still not fully recovered from the COVID situation that we’ve all been dealing with,” he said.
“So, when you add that additional stress to any business, it’s something that we’re all getting tired and frustrated by in terms of we’d like things to get back to normal.”
The Greater Saskatoon Chamber of Commerce is also disappointed with the city’s approved budget.
CEO Jason Aebig said the Chamber urged council to keep costs under control and competitiveness at the forefront of its deliberations by finding savings and deferring spending until Saskatoon’s economic forecast improves.
Aebig said it’s hard to accept that there were no additional savings in the city’s $1.2 billion budget.
“Every dollar that a business is required to pay in taxes is one less dollar that they can use to hire or rehire or reinvest in their businesses and now, more than ever, we need these businesses to be fuelling this economic recovery.”
Keith Moen, executive director of the NSBA Saskatoon Business Association, calls the increases “tone deaf.”
He said he believes some things included in the budget didn’t appear as pressing as other matters.
Moen said this will also impact how much consumers spend and where.
“It’s going to dip into the pocketbook of the consumer and with that, there will be decisions that will be made by those consumers about where they’re going to spend their other money that they have available and it’s quite often the case where businesses will suffer as a result of that because they won’t be able to rely on that consumer spending they once did.”
On Thursday, Mayor Charlie Clark told CTV News that he recognizes it is important for the city to do everything it can to keep the tax rate low but that it’s also crucial to maintain services and address issues the city is facing.
CTVNews.ca Top Stories
'State or state-sponsored actor' believed to be behind B.C. government hacks
The head of British Columbia’s civil service has revealed that a “state or state-sponsored actor” is behind multiple cyber-security incidents against provincial government networks.
Which Canadian cities have the highest and lowest grocery prices
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
More than half the Canadians once detained in Syrian camps for suspected ISIS family members have returned home
A total of 29 Canadians have been freed from detention camps in northeast Syria and brought back to Canada since human rights advocates began lobbying for their release years ago.
Rare severe solar storm Friday could bring spectacular aurora light show across Canada
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Canada abstains from Palestinian UN membership vote but supports two-state solution
Canada was one of 25 countries that abstained from a United Nations vote on Palestinian membership that passed with overwhelming support on Friday.
Mother assaulted by stranger while breastfeeding baby in her car: Vancouver police
A person was arrested in East Vancouver Thursday after allegedly entering a car while a mother was breastfeeding her four-month-old boy.
'I may have some nightmares:' Man survives being bitten by 2 sharks in Bahamas
A man who was bitten by two sharks in the Bahamas said Thursday he's 'thankful that I'm here' while sharing his story of survival.
Amish youth experience a rite of passage called Rumspringa. It’s not what you might think
The idea of “Rumspringa” has a specific spot in the American imagination. A rite of passage for young people in some Amish communities, Rumspringa is seen by most outsiders as a wild time away from strict Amish rules, when teenagers can experiment with the modern vices of the world.