Ratepayers in the RM of Corman Park are on the hook for about $1,100 in unpaid property taxes on two grazing leases on crown-owned pasture land that were cancelled by the province.
Two separate grazing leases on two quarter sections of land in the RM north of Martensville were cancelled by the provincial Ministry of Highways and Infrastructure (MHI) land management department in mid-May. The leases were terminated because the individuals leasing the land had not paid municipal and education property taxes. Payment of the taxes is one of the conditions attached to provincial grazing leases.
The amounts in arrears were $128.34 on the NE 33-38-5-W3rd; and $948.88 on the SE 33-38-5-W3rd. Both tenants are non-residents of Corman Park and do not own other property in the municipality.
Corman Park council voted at its May 25 video-conference meeting to eat the cost of the taxes in arrears.
Councillors weren’t happy about it, but they didn’t have any choice.
Crown land is exempt from taxation; and numerous concerted attempts by RM administration to collect from the individuals who were leasing the properties have come up empty.
The situation is very unfair to rural municipalities, according to Corman Park Reeve Judy Harwood.
“There’s a real gap in the system,” Harwood explained. “When taxes on provincial grazing land fall into arrears, the municipality shouldn’t be left holding the bag.”
Councillors voted to direct administration to draft a resolution on the issue that will be submitted to the next convention of the Saskatchewan Association of Rural Municipalities (SARM). Resolutions adopted at SARM conventions become policy for the organizations and lobbying efforts are then directed to have the provincial government implement those policies.
The resolution, put forward by Corman Park Division 5 councillor Art Pruim, asks the province (specifically the MHI land department) be held responsible for tax arrears and charges upon cancellation of lease agreements.