How Taxes Are Calculated

MUNICIPAL TAXES:

= [(SAMA Assessment x POV)/1000] x (MR x MRF)

= [(SAMA Assessment x POV)/1000] x Effective Mill Rate

= (Taxable Assessment / 1000) x Effective Mill Rate

EDUCATION TAXES:

= [(SAMA Assessment x POV)/1000] x Education Mill Rate

= (Taxable Assessment /1000) x Education Mill Rate

EXAMPLE:

Assessment of a cultivated quarter section is $200,000 (ag land). Education mill rate is 1.42; RM mill rate is 10.25 and mill rate factor is 0.30.

Municipal taxes = [(200,000 x 55%)/1000] x 10.25 x 0.30 = $338.80

Education taxes = [(200,00 x 55%)/1000] x 1.42 = $156.20

Total taxes owing = $495.00

(The RM collects the entire amount and sends the education portion to the government.)

WHAT ARE THE PERCENTAGES OF VALUE (POV)?

Percentages of Value (POV) are the percentage of assessment that is taxable and they vary by property class. These values have been set by the Provincial Government. Please see the Administrator for the current Provincially set values. The SAMA Assessment x the POV equals the Taxable Assessment.

WHAT ARE EDUCATION TAXES?

Education Taxes are included on your tax levy. The RM collects these amounts and forwards the funds to the proper Taxing Authority. The RM does not control the amounts set by the Provincial Government. The Education Taxing Authorities in this RM are:

South East Cornerstone School Division
Prairie Valley School Division
Good Spirit School Division

MINIMUM TAX

The Minimum Tax is set by the RM for each property class. If the tax calculation is less than the minimum; the minimum will be levied. The Minimum Tax is set via Bylaw.

Agricultural: Land $50.00

Residential: Land $50.00

Property $100.00

Commercial: Land $50.00

DISCOUNTS

Discounts are given as an incentive for prompt payment of current year Municipal taxes. Discounts apply until the end of each month. This incentive program is set by the RM.

July: 5%
August: 5%
September: 5%
October: 4%
November: 2%
December: 0%

HOW ARE THE MILL RATES DETERMINED?

The Mill Rate (MR) is set annually by Council based on how much revenue needs to be generated from the tax base to cover expenses. The Provincial Government sets the Mill Rates for education taxes and they vary by property class. The RM sets one mill rate for the entire Municipality and then applies Mill Rate Factors to different property classes.

WHAT ARE THE MILL RATE FACTORS?

Mill Rate Factors (MRF) are factors multiplied by the mill rate to differentiate the tax balance due from each type of property. Mill Rate Factors are set by Bylaw. When you multiply the MR by the MRFs – you get the Effective Mill Rate (EMR). Education Taxes are set via a Mill Rate that is not uniform but may vary by Property Tax.

DUE DATE & ARREARS

The Due Date for Taxes is December 31 of the year in question and will be processed as the first day in January for unpaid amounts.

Penalty on Arrears of taxes is calculated on amounts of taxes which remain unpaid after the December 31st of the year in which they are levied. The penalty is 1% of the total taxes per month. This amount is calculated and forms part of the taxes as of the first day of each month. This penalty calculation is applied to both Municipal Taxes and Education Taxes.

Tax Enforcement is listed on lands with outstanding arrears.