Business View Magazine | March 2020

257 BUSINESS VIEW MAGAZINE MARCH 2020 SASKATCHEWAN URBAN MUNI C I PAL I T I ES ASSOC I AT ION amount taxed, the property tax bill cannot be mitigated, reduced, or linked to available money. While user fees have an advantage over property taxes, in that they can take into account ability to pay, they are also limited by their link to infrastructure that is costly to develop and operate. Making fees too high reduces the number of residents able to participate in programs and recreation, potentially reducing overall municipal incomes. In reality, most fees do not bring in sufficient income to run a recreational facility without supplementation from other funding sources. to pay—instead relying on the likelihood that someone owning a more expensive property will also have greater liquid assets. If home prices remained static, this would be closer to the truth; as it stands, there are a variety of demographics, including seniors, who find themselves with homes that increase in market value, but lack the liquid assets to deal with increased taxation. This creates a ceiling for municipalities looking to increase revenues by increasing property taxes that doesn’t exist with other tools; while a consumption tax can scale with discretionary spending a resident makes, allowing them to balance and self-limit the