Juggernaut television psychologist Dr. Phil often says "the best predictor of future behaviour is past behaviour." If this maxim holds true with our NDP government in Saskatchewan, it's bad news for property taxpayers.
In last year's Canadian Taxpayer's Federation (CTF) supporter survey, Saskatchewan respondents identified municipal and school taxes as enemy number one when it comes to taxes. This is in keeping with a long tradition of discontent with our current property tax system, which is inefficient, complicated and inherently unfair.
Hatred for rising school taxes manifested itself in the form of 31,352 signatures on three separate petitions, which were hand delivered to Saskatchewan Finance Ministers. The CTF delivered thousands of signed petitions calling for a review of the school tax system and immediate school tax relief to then-Finance Minister Eric Cline.
At that meeting we advised the Minister that if there were a single tax reform the NDP government ought to consider, it would be to address the problem of onerous property taxes. Well folks, the government clearly isn't listening.
While Finance Minister Jim Melenchuk proposed a "review" of the school tax system, similar in principle to the review of income taxes that resulted in modest rate reductions, there was no mention of what the committee's mandate would be. Without an expressed mandate to control school taxes, yet another committee is nothing more than government lip service to a festering problem - particularly in rural Saskatchewan.
A recent followup call to the Finance Minister's office reveals that the thousands of signed petitions have subsequently gone missing - despite the fact that they were explicitly asked to table them in the legislature. At the time of the request Minister Cline said they would "look in to it." Whether the petitions were lost in the cabinet shuffle, or were promptly sent through a shredder is academic.
Information acquired from the Saskatchewan government by the Canadian Taxpayers Federation (CTF) reveals that property taxes continued to soar in 2002, far outstripping Saskatchewan's 12 per cent rate of inflation since 1997.
- Total property tax bills (including municipal and school taxes) increased by 20 per cent since 1997 ($191,728,635).
- Total property taxes (including municipal and school taxes) for rural municipalities increased by 28 per cent ($98,759,106) since 1997.
- Total property taxes (including municipal and school taxes) for agricultural land increased by 19 per cent.
- School taxes on agricultural land increased by 26 per cent ($34,064,967) since 1997.
It's easy to criticize. "What are the alternatives " they say. The bottom line is there are other ways - especially when it comes to school taxes. In Saskatchewan, 59 percent of education costs come from the property taxpayer. The next biggest burden is Manitoba where taxes on property account for 51 per cent of education funding. New Brunswick, PEI and Newfoundland fund education entirely through general revenues.
Recognizing and accepting the fact that property taxes are rising 64 per cent faster than inflation, and that this trend must be immediately stopped, is central to making reforms. Dr. Phil would call it "taking ownership of the problem." This situation was created by the provincial government, and be-everything-to-everyone local politicians. It's up to them to solve it.
In the coming months the CTF will be releasing its own proposal for school and property tax reform with eye toward simplicity and fairness.
Our politicians desperately need some advice. Dr. Phil, are you listening