Regina mayor pitches new tax powers for Sask. cities

Regina's mayor wants the Saskatchewan government to let cities introduce new taxes as the province and its municipalities discuss updating the province's revenue sharing formula.

Michael Fougere brought up the issue Wednesday at a Regina city committee meeting.

During a discussion about an administration report on marijuana, Coun. Andrew Stevens suggested Regina ask the province for permission to bring in a municipal sales tax on marijuana.

"SUMA will be having discussions about new revenue for cities; it's part of a broader conversation than cannabis," Fougere said. "At this point, [taxing marijuana] is out of context around a broader discussion on tax tools."

Fougere said he met with Government Relations Minister Warren Kaeding on Wednesday to get the ball rolling on discussing new revenue sources.

The Cities Act spells out which taxes municipalities can — or cannot — collect. Cities are allowed to collect property taxes, but are restricted over what else they can tax.

One of the few options cities do have is the ability to implement an "amusement tax" on sports and entertainment. But cities are not allowed to implement a sales tax, something Fougere would like to see changed.

"Revenue sharing, grants-in-lieu and other issues are directly being discussed with the province right now," Fougere said. "We're discussing through SUMA and the city mayor's caucus the whole issue of new sources of revenue for municipalities."

Cities still affected by last year's provincial budget

Saskatchewan municipalities faced deep shortfalls after last year's contentious provincial budget. It forced some municipalities, including Regina and Saskatoon, to revise their budgets.

The government later walked back the grants-in-lieu cuts in nine communities, but Regina and Saskatoon were not part of the reversal.

That budget continues to affect Regina: its proposed budget for this year reports that it will cost the city $4.6 million this year, and the city will receive $2 million less in revenue sharing compared to last year.

At the SUMA convention last week, Premier Scott Moe promised to include new details on grants-in-lieu in the spring budget and discuss revamping the province's revenue sharing formula with municipalities.

Those discussions will happen over the next year; some meetings are already underway.

Kaeding was not available for an interview Thursday.

In a statement, a ministry spokeswoman said the province is willing to listen to any ideas that Saskatchewan municipalities have during its review of the revenue sharing program. But any ideas will be have to balanced with the government's overall priorities of reducing taxes.

News taxes should come with referendum: association

Though this request is still a trial balloon at this point, Todd MacKay, the prairie director for the Canadian Taxpayers Association, said municipalities should not be allowed to collect any new taxes without holding a referendum.

"Is it hard to find those efficiencies? Of course, but that's the job [the mayor and council] have been hired to do. They have to do that instead of trying to siphon money out of people's pockets."     ​