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
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.