The City of Moose Jaw continues to narrow the tax gap between residential and commercial properties. 

The municipal tax increase for 2022 was set to 5.45 per cent. This would result in a 6.4 per cent increase for residential properties and 3.56 per cent increase for commercial properties. These calculations are before adjustments for the 2022 commercial appeal allowance. 

Moose Jaw City Council began the process of reducing the tax gap between residential and commercial properties in 2018. At that time, commercial properties were paying 2.35 times more than residential properties. 

Over time, we're allocating future municipal tax increases based on the taxable assessment in each of the residential and commercial and industrial property classes, so it's based on assessment rather than some arbitrary calculations that were done in the past,” Director of Financial Services Acker said. 

Under the new formula, commercial properties are now paying 1.8 times compared to 2.35 times four years ago. 

“A residential property versus a commercial property valued at $200,000 fair market value residential property would pay $1,466 and commercial would be $2,644,” explained Acker. 

He added that a commercial property valued at $200,000 would have paid $3,447 in taxes in 2018. 

“So, there's been significant movement in terms of shifting that burden away from commercial and back onto residential,” Acker said. 

Acker said the ultimate goal is to get to a point where there is no gap between residential and commercial properties.