ANNUAL EDUCATION PROPERTY TAX RETURN FOR THE PERIOD Of JANUARY 1 DECEMBER 31. Instructions for completion

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1 ANNUAL EDUCATION PROPERTY TAX RETURN FOR THE PERIOD Of JANUARY 1 DECEMBER 31 Instructions for completion NOTE: If you have more than one school division in your municipality you are required to complete a form for each school division using the assessment for that school division. The Annual Education Property Tax Return is in addition to the monthly and annual returns the municipality must submit. PART I: Taxable Assessment and Mill Rates Part I requires information regarding the uniform mill rate, the taxable assessment, the exempt assessment, the net school assessment, the mill rate and the gross current school levy for each provincial property class: - Non Arable (Range) Land N - Other Agricultural Land A - Residential Land R - Multi Unit Residential Land M - Seasonal Residential Land S - Commercial and Industrial CO - Resource (oil, gas, mines) CR - Elevators E - Railway Rights-of-Way RW - Pipeline (resource property class) PL Do not include supplementary assessment. Taxable Assessment In a municipality with only one school division the taxable assessment values for each property class may be found on the annual Saskatchewan Assessment Management Agency (SAMA) Assessment Return (Items 3A, 3B, and so on). Be sure to use assessment before council exemptions are deducted. - If there is more than one school division in the municipality a statement must be prepared for each school division. The total value for each property class must be broken out into the different school divisions. The total value for all school divisions must equal the total value contained within the annual SAMA return. Exempt Assessment Enter the amount of exempt assessment on the appropriate line if council has exempted any assessment by bylaw or resolution. The category for Exempt Assessment includes the assessed value of land and improvements that have been exempted from taxation by the municipality. Statutory exemptions are not reported. An exemption from taxation may be done by bylaw or resolution. See the following: The Northern Municipalities Act, 2010 subsections 315(1) and (2); The Municipalities Act subsections 295(1) and (2); and The Cities Act subsections 262(3) and (4). 1

2 Net School Assessment Taxable Assessment Exempt Assessment = Net School Assessment If there is a number entered in the Exempt Assessment column it must be subtracted from the Taxable Assessment for that property class. The result is the net school assessment. Mill Rate The mill rate is the tax rate for education purposes which has been established by the province. The 2014 education mill rates set for Agriculture, Residential, Commercial and Industrial, and Resource are: Agriculture includes: 2.67 mills Non-Arable and Arable; Residential includes: 5.03 mills Residential, Seasonal Residential, Multi-unit Residential; Commercial includes: 8.28 mills Commercial and Industrial, Elevators, Railway Right s-of-way Resource includes: mills Pipelines, Mines, Oil and Gas Current School Levy The Current School Levy is calculated for each property class by multiplying the taxable assessment times the mill rate. Example: Net School Assessment x Mill Rate 1000 = Current School Levy Residential: $600,000 x = $3, Once all property classes have been calculated add the totals in the column. This result will be reported in Item 9. Do not include the supplementary levy here. The supplementary levy should be reported as an adjustment under Part II Item 13. PART II: Tax Collection Information Part II includes a reconciliation of school Accounts. This is broken down into: Analysis of payments, adjustments and prepayments to the Division (Items 1 to 6); Analysis of amounts owed to the Division (Items 7-14); and Total cash collected on behalf of the Division (Item 15). Analysis of payments, adjustments and prepayments to the Division Item 1 - Due from School January 1 Carry forward the value (if any) on the line Due from School Division December 31 of the previous year s annual education property tax return. Item 2 - Payments to School for the Period Ending December 31 List the payments made to the Division in each month beginning January 1 and ending December 31 of the year for which the annual statement is being completed then calculate the total amount of all monthly payments made and insert the sum on the total payments line. Item 3 - Loss on Sale of Tax Title Property If tax title property was sold during the current year for an amount less than costs and arrears report the amount of the school s share of the loss here. This amount is the difference between what was credited to the school from the sale and the education taxes owing to the school division when the land was transferred to the municipality. For more details refer to the Tax Enforcement Manual. 1 2

3 Item 4 - Share of Approved Tax Collection Costs Report the school division s share of reasonable costs incurred while enforcing the payment of taxes. Do not include costs recoverable pursuant to The Tax Enforcement Act. See the following: The Northern Municipalities Act, 2010 section 328; The Municipalities Act section 309; and The Cities Act subsection 273(1). Item 5 - Taxes Cancelled/Abated This value is transferred from Item 16 Total Taxes Cancelled/Abated. Item 6 Due to School as of December 31 This value is transferred from Item 20 Total if the number is positive or leave this blank if Item 20 is negative. Item 7 - Due to School January 1 Carry forward the value (if any) from Due to School 31 of the previous year s annual education property tax return. Item 8 - Gross Penalty Added to Tax Arrears Report the total gross penalties added on arrears of school taxes for the year. The amount should be obtained from your tax roll summary sheet. Item 9 Current Levy This is the total from Part I under Current School Levy. Item 10 - Penalty on Current Year Taxes If penalties are added to current year taxes report the net penalties. Obtain this information from the tax roll summary. Item 11 - Share of Trailer Licence Fees Trailer licence fees must be shared with the school division. The percentage to send the school division is calculated by dividing the education taxes levied by the total municipal and education taxes levied - multiplied by 100. The dollar amounts can be found on your tax roll levy summary. Example: Education taxes levied total taxes levied x 100 = Percentage $228,000 $520,000 x 100 = 43% The percentage formula is found in: The Northern Municipalities Act, 2010 subsection 327(4), The Municipalities Act subsections 308(4); and The Cities Act subsection 272(4). Item 12 - Share of Gants-in-Lieu of Taxes Assessment based grants-in-lieu of taxes paid to the municipality must be shared with the school division in the same proportion as the education mill rate. Apply the grant-in-lieu amounts to the appropriate category such as federal, provincial, CPR, housing authority, etc. These amounts should be obtained from the cash receipt accounts, the tax roll summary or the general ledger. Item 13 - Adjustments Exercise caution while using this category as most school tax adjustments will fit into one of the other items. The supplementary levy can be reported here as an adjustment. 3

4 Item 14 - Due from School as of December 31 This represents an amount due from the Division such as overpayments. If the calculation from under Item 6 Due to School as of December 31 proves to be a negative value report it here. See item 20 on page 2 of this return. TOTALS The two totals (Items 1-6 and Items 7-14) must be equal. If these totals do not agree the process should be repeated to ensure the accuracy of all figures and calculations. Check to make sure all money sent to the school division during the year is included in this return. Item 15 - Total Cash Collected on Behalf of this School Authority for the Period Ending December 31 Item 15 records the actual cash collected by the municipality on behalf of the division for the current year to December 31 including: taxes; trailer licence fees; grants-in-lieu of taxes; and proceeds from the sale of tax title property. PART III: Detailed Statement of School Taxes Cancelled/Abated Provide details regarding all taxes that were cancelled/abated during the year. The Municipalities Act, The Northern Municipalities Act, 2010 and The Cities Act empower municipalities to authorize certain cancellations, compromises and abatements on behalf of school divisions. Complete this section by listing the individual properties which benefited from school tax cancellations or abatements. This information is available from the municipality s minutes and/or the tax roll. All cancellations and adjustments of school taxes provided during the year must be listed. Record the total in Item 16. Do not record any tax amount for property which has been transferred to the Tax Title Property Account. The transfer will be recognized in Items 18 and 19. Total all cancellations and record this value in Item 5 Taxes Cancelled/Abated. Municipalities are to provide the school division with full particulars of the proposed compromise or abatement before the compromise or abatement is to take effect. The Northern Municipalities Act, 2010 subsections 295(1)(2) and (3); The Municipalities Act and subsections 274(1)(2) and (2.1); and The Cities Act subsections 244(1)(2) and (2.1). PART IV: Details of Balance of Liability at December 31st Part IV requires detailed analysis of the liability to the school division as of December 31. The total for Item 20 is recorded in Item 6 Due to School December 31 on page one. Item 17 - Due on Account of School Taxes, Trailer Licence Fees, Grants-in-Lieu of Taxes This relates to money collected on behalf of the School Division but has not been remitted. This amount may be calculated as follows: 1. From your cash receipts book or general ledger obtain the current year total of the: a) school taxes collected; b) school s share of trailer licence fees collected, if applicable; and c) school s share of grants-in-lieu of taxes collected, if applicable. 4

5 2. Add any amount owing reported in Item 17 of the previous year s annual education property tax returns. 3. Subtract the total net payments made to the division for the year (Item 2) and any amount reported as Due from School Item 1. Ensure that this amount does not include remittances in respect of tax title property for the previous or the current year. 4. The resulting balance is entered as Item 17. Item 18- Due on Account of Uncollected Taxes This total is taken from the general ledger or tax roll summary. Item 19 - Due on Account of Tax Title Property This is split into two parts: a) Sold and Collections Not Remitted: If the municipality has sold any Tax Title Property and has not paid the school division its share report the school division s unpaid amount on this line. b) Unsold: This amount is the school tax arrears transferred to Tax Title Property when the municipality acquired title. To update the value of unsold tax title property: carry forward the value reported on last year s school statement; add the value of any new properties acquired under The Tax Enforcement Act during the period of January 1 to December 31; and subtract the gross value of any tax enforcement properties sold during the period of January 1 to December 31. Any loss on the sale will be reflected in Item 4. Proceeds which have not been remitted to the School Division will be reported in Item 19a (above). Every municipality should have a Tax Title Property log which records the property description, the year the property went into tax title, the amount of taxes owing to the municipality and to the school division for each individual property. This log must be reconciled each year and match with the Unsold dollar amount. Item 20 Total Item 20 is the sum of Items 17, 18 and 19 and represents the total liability due to the school by the municipality as of December 31. If Item 20 is a positive number transfer it to item 6 Due to School as of December 31. If Item 20 is a negative number transfer it to Line 14. Item 21 - Estimated Amount of Uncollectible Tax Arrears Item 21 provides for the amount of school taxes the municipality has estimated will not be collected. This estimate will be used by the school division to help establish a budget allowance for uncollectible taxes. Municipalities should have a realistic amount for the uncollectable taxes. You may wish to discuss this with your auditor when you get your annual audit completed. PART V: Local Exemptions Exemptions are properties that have an assessment on the assessment roll but council has chosen to exempt all or a portion of the assessment from taxation. No taxes will be levied on a property that has assessment exempted from taxation. This is different than a property that has an assessment and taxes are levied on the assessment and council cancels or abates all or a portion of the taxes. All local exemptions including economic development agreements that council has granted by resolution or bylaw must be listed in this section. The column Taxable School Assessment Exempted must equal the exemptions listed in Part I Exempt Assessment. 5

6 The following must be completed: The name of the person/company; Explanation a brief explanation as to why exemption was granted Effective Term if this is an economic development agreement the term of the agreement must be listed. The term must not exceed five years. Property Class list the property class of the assessment. Taxable School Assessment Exempted the dollars of assessment being exempted. Education Property Tax Mill Rate list the education mill rate for the property class. Foregone Education Property Tax calculate the amount of education property tax that is being exempted. Sending In The Annual Education Property Tax Return After you have balanced your Annual Return send a copy of the return to: 1) the school division; and 2) the Ministry of Government Relations and Education. The options for submitting to the Ministries are listed on the bottom of the form. Keep a copy for your municipal auditor. The return must be completed and submitted by January 15 of each year. REMEMBER: Electronic signature is accepted. You can fill in the form, save it to your computer and it. Websites: 1 6