Regina Catholic School Division looks to set its own tax rate
Push comes in response to change in education property tax collection system, effective Jan. 1
The Regina Catholic School Division is looking to decide its own tax mill rate in 2019 — but says it will be set at a rate that won't jeopardize government funding or grants, or affect taxpayers.
The school division decided at a board meeting on Monday that it will advise the Ministry of Education that it plans to set its own mill rate — a push that comes in response to a change in the education property tax collection system, effective Jan. 1, 2018.
Money collected by municipalities will now go into the province's general revenue fund account, then be distributed to school divisions. Previously, municipalities would collect and direct the funds straight to the school divisions.
"The main and initial concern is just to ensure that we still protect our constitutional rights to have access to the education property tax base," said Curt Van Parys, chief financial officer for the Regina Catholic School Division, in explaining why the division wants to set its own mill rate.
Tax mill rate particulars
The amendment to the education property tax collection system states that a separate school board can set its own mill rate — the rate at which a property is taxed — but only if a bylaw is passed on or before Dec. 31 of any given year.
The main and initial concern is just to ensure that we still protect our constitutional rights to have access to the education property tax base,- Curt Van Parys, chief financial officer for the Regina Catholic School Division
"We were not able to do so this year, and ran into a bit of a transitional snag," Van Parys said.
The division will push for the tax mill rate to be applied for 2019.
Greater Saskatoon Catholic Schools, Light of Christ Catholic School Division and Christ the Teacher Catholic Schools have already set their own mill rates, typically on par with the provincial government's levy.
If the division's bylaw passes, Van Parys said the RCSD will also likely match the province.
Possible outcomes
If set higher, the Catholic division's rate could trigger a reduction in grant funding. On the other hand, a lower rate could prevent an increase in operating funding for schools.
"I think education property tax and operating funding make up for about 90 per cent of our funding, so those are the two big ones that we need to get addressed," Van Parys said.
He doesn't think the amount of money the school division will receive will change once the amendments to education property tax collection come into effect in January.
The amendment will have no effect on taxpayers, he said.