Property taxes at the Royal Regina Golf Club and Wascana Country Club in Regina, Saskatchewan will increase by $17,195 and $2,926 (Canadian), respectively, if approved through the 2022 budget process. “We are creating a tax loophole, I think, for a space and for residents that probably do not need this,” said the councilman who proposed eliminating a decade-old tax waiver for the clubs. Councilwoman Lori Bresciani argued, though, that it would be unfair to recommend removing the break before discussing it with the affected clubs. “Seventeen thousand dollars is a lot, when you think about a golf course that is only open for a few months in the summer,” she said.
The city council in Regina, Saskatchewan, Canada has voted to eliminate a decade-old tax break for private golf courses, the Regina Leader-Post reported.
“We are creating a tax loophole, I think, for a space and for residents that probably do not need this,” said Councilman Andrew Stevens who put forward the idea at a recent meeting.
Regina has two private golf courses—the Royal Regina Golf Club and the Wascana Country Club, the Leader-Post reported. The change, if approved through the 2022 budget process, will increase property taxes for one course by $17,195 (Canadian) and the other by $2,926.
“These are private clubs with pretty lucrative fees associated to their membership,” said Stevens. “I think that membership can afford to pay the difference.”
The change was spurred by a Tax Policy and Affordability Report presented to council that included a review of property tax sub-classes, the Leader-Post reported. According to the report, council established the golf course sub-class in 2001 for “tax relief purposes to offset the direct competition with municipal golf courses that are exempt from property taxes.”
The mill rate factor for the golf course sub-class is currently set to 65 percent of that of the commercial sub-class, the Leader-Post reported. The approximately $20,000 not billed to golf courses each year, is made up by the remaining properties in the commercial property class.
Stevens described the sub-class as a relic from a previous council that the current council should not be beholden to and said it does nothing to forward the current objectives of the city, the Leader-Post reported. He put forward an amendment to the report that directs administration to eliminate the golf course sub-class in the 2022 budget deliberation process.
“If your concern is that there hasn’t been any public consultation, etc. — one, I would say I don’t think they’re entitled to it. Secondly, if this amendment goes ahead it will be considered in the budget and there will be time for any of the affected parties to come forward and speak to this,” he said.
But that didn’t sit well with other members of council, the Leader-Post reported. Councilwoman Lori Bresciani argued that it would be unfair to recommend the sub-class be removed before the city has even had a discussion with the owners of the affected golf courses.
“Seventeen thousand dollars is a lot when you think about a golf course is only for a few months in the summer,” she said. “The revenue has to carry all year round to keep it open.”
Councilman Bob Hawkins said it doesn’t make sense to impose an additional burden on two “recreation facilities” that provide opportunities to people of all ages, including youth and seniors, the Leader-Post reported. He also argued the national exposure the courses garner for Regina when they host events like the CP Women’s Open held at the Wascana Country Club in 2018 is important.
But others highlighted data in the report that shows out of the 18 Canadian cities administration researched for the review, Moose Jaw is the only other city that has a golf course sub-class, the Leader-Post reported.
“I do see that in comparison that this isn’t a common sub-class at all,” said Councilwoman Cheryl Stadnichuk. “It doesn’t sound like it would be a horrendous hardship on the golf courses, so, I am going to support this amendment.”
And Councilman Jason Mancinelli agreed that if the owners of the private golf courses felt strongly enough about the change, they would have the chance to make their case come budget time, the Leader-Post reported.
As part of his pitch, Stevens reminded council that a week prior, it voted down a motion to provide property tax relief to all low-income households in Regina, instead opting to create a tax deferral program just for low-income seniors and people with disabilities, the Leader-Post reported. The program was also part of the Tax Policy and Affordability Report and was approved Wednesday.
“I just don’t think it’s fair to have this especially since council decided to not support a rebate system for low-income households,” Stevens said. “If we remove this sub-class the golf courses will survive.”
In the end, the amendment passed with a 6-4 vote, the Leader-Post reported. Council also approved new servicing agreement fees [SAFs] and development levy rates, which are set annually. The rates will be set at $297,000 per hectare for residential and commercial development, and $99,000 per hectare for industrial-zoned development, effective Jan. 1, 2022.
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