Big Box Retailer Appeals Means Residents Pay More

A tax assessment appeal process dating back to the 2017 taxation year has come to a close and the final decision will see Prince Albert taxpayers covering a $652,000 tax revenue impact relating to reductions in the property assessments for five big box stores operating in the City: Walmart, JYSK Canada, Canadian Tire Corporation, Sport Check, and Marks Work Warehouse. After several decisions moving through appeal bodies including the Board of Revision, Sask Municipal Board and the Court of Appeal, the companies were ultimately successful in challenging how the Cost Approach appraisal method for commercial property assessments is applied in Saskatchewan.

“The assessment system is set up to allow for property owners to appeal and it’s their right to go through the process,” said Mayor Greg Dionne. “It’s just incredibly disappointing. These businesses are some of the most profitable in Prince Albert and the result of their appeal is that our residents, who are the customers that support them, will need to pay more. With the obvious exception of Canadian Tire, there is very little, if any, support these corporations offer to our community.”

Major corporate businesses have in recent years started to engage professional tax agents to aggressively challenge cities across Canada. In that the assessment appeal process can take several years to complete, these business strategies have created a great deal of uncertainty for municipal fiscal planning.  There were 15 commercial property appeals in Prince Albert in 2017 challenging their assessments to the Court of Appeal level, with just these five box stores being successful in their challenges.

“City assessors applied the rules fairly and correctly as it was set out in legislation and guides,” said Vanessa Vaughan, City Assessor for the City of Prince Albert. “We followed the process of mass appraisal but are now dealing with the burden of a significant loss.”

To protect other taxpayers from having to continue to absorb the impact of the decision benefitting these commercial properties, the City of Prince Albert has taxation tools available. The property tax bylaw for this classification of commercial properties was adjusted in 2020 to protect revenues of $430,000 in 2020, a measure which has already contributed to the City’s fiscal stabilization. These tools will be considered in future years to fairly address revenue impact going forward.  

At the upcoming City Council meeting, a report from Administration will be considered that recommends that the combined appeal impact from these appeals and other outstanding commercial appeals of $829,553 since 2017 be funded from fiscal stabilization.

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For media inquiries, please contact:

Mayor Greg Dionne
(306) 953-4300