Saskatoon city hall is preparing to seek public input on one of its most divisive fiscal issues: the ratio determining how much of the city’s property tax burden falls on homeowners versus commercial property owners.
Starting in October, the city will launch an online survey, with printed copies also available, asking residents and business owners to weigh in on the tax split. City hall is also running focus groups on the topic alongside the survey.
The request for public engagement came from Coun. Randy Donauer, who noted the issue has repeatedly surfaced during past budget discussions without resolution. Donauer said he expects the conversation to be difficult, predicting that neither residents nor businesses will be fully satisfied with whatever decision council eventually makes, but argued that broad dialogue is necessary before that decision is reached.
How the Current Split Works
Under Saskatoon’s existing system, non-residential properties — including commercial buildings and public institutions — pay $1.71 in property tax for every dollar paid by a residential property of equal assessed value, a ratio known as 1.71. As a result, homeowners are set to cover more than two-thirds of the $356.8 million in property tax the city expects to collect this year, while non-residential property owners account for just under a third.
Council last adjusted this ratio the previous year after a reassessment increased the value — and therefore the tax burden — of residential properties. Donauer described the issue as controversial and often misunderstood, noting it tends to resurface unexpectedly during budget deliberations.
Comparing Saskatoon to Other Cities
According to information posted on the city’s website, Saskatoon’s residential-to-non-residential tax ratio is among the lowest in Western Canada. Regina’s ratio sits at 1.61 and Winnipeg’s at 1.44, both lower than Saskatoon’s. By contrast, several larger cities impose a heavier tax burden on commercial properties, including Calgary (4.63), Edmonton (3.26), Vancouver (3.53) and Surrey (2.54).
Keith Moen, executive director of the North Saskatoon Business Association, said cities like Saskatoon need to maintain a lower business tax rate to remain competitive, since larger centres can draw businesses through amenities and workforce advantages instead. Moen said he welcomes the tax policy review but cautioned against relying solely on an open public survey to shape final decisions, saying such surveys tend to produce biased and predictable results rather than a definitive answer.
Moen also pointed out that while businesses shoulder a higher share of the tax burden, they do not get a vote in municipal elections, though individual business owners can vote as residents. He added that the four-year property reassessment cycle used in Saskatchewan, which can cause large swings in assessed values, often puts businesses at a disadvantage regardless of the ratio in place.
Past Attempts and Business Community Response
The tax split has been a flashpoint before. During Saskatoon’s 2023 budget talks, then-councillor Mairin Loewen pushed for a shift that would have increased the business share of property tax while lowering the residential share, but the proposal was defeated.
Jason Aebig, CEO of the Greater Saskatoon Chamber of Commerce, who has previously spoken out on the tax ratio, said his organization is still reviewing the upcoming survey and was not ready to comment on it.
Separately, a recent report from the Canadian Federation of Independent Businesses ranked Saskatoon second among 66 Canadian municipalities for attracting and supporting small business growth, placing second for cost burden, fourth for regulatory burden and eighth overall for small business friendliness. Regina ranked 12th overall in the same study. Moen said that despite the challenges posed by the tax burden and reassessment swings, he considers Saskatoon a good place to do business.
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