$62.5 million revenue-share for Saskatoon and small business tax freeze welcome news

SASKATOON, SK – March 20, 2024 – The 2024-2025 Provincial Budget tabled today focused on providing critical investments in healthcare and education but fell short of new measures to support Saskatchewan’s small business job creators.  

"SME owners are feeling increasingly sidelined by the absence of targeted measures to help them compete and win,” notes Jason Aebig, CEO of the Greater Saskatoon Chamber of Commerce.  “Patience is wearing thin as businesses will have to wait another year to see specific measures aimed at helping them access capital, cut costs and grow.”

“Business resilience is being tested as operating costs continue to rise unchecked,” says Aebig. “Competition is fierce across Western Canada as other jurisdictions shore up their SMEs and benefit from the outsized role they pay in job creation and economic output.”  

The freezing of the small business tax rate to one per cent until June 30, 2025 is welcomed by the Chamber.

The province’s record-breaking $340.2 million in municipal revenue sharing for the upcoming year is also good news for Saskatoon ratepayers. The City of Saskatoon’s share will increase by 14.3% or $62.5 million in unrestricted funds which should offset municipal tax and utility rates increases in 2025.

According to the Chamber, other highlights for business in today’s budget included:

• $6 million for planning work for Saskatchewan Polytechnic’s new campus 
• Doubling of the STSI annual tax credit cap from $3.5 million to $7 million and inclusion of cleantech start-ups 
• Redevelopment of Innovation Place to accommodate scaling companies, particularly those in agtech
• $20.1 million for SRC in Saskatoon to continue its industry development work in agriculture, oil and gas, nuclear and critical minerals plus an additional $21.5 to pursue its commercial demonstration of a micro reactor in Saskatchewan 
• $27.6 million to support Indigenous people in connecting to the labour market and providing services for both employers and job seekers 
• $1.5 million to add 250 apprentice training seats for construction -related trades 
• Saskatchewan continues to have the second lowest net debt-to-GDP ratio in the country

In the year ahead, the Chamber will continue to focus on advancing the priorities of Saskatoon businesses, including:

• New SME Investment Tax Credit
• Provincial property tax reform
• Small Business Rebates for Impacts of Property Damage, and Petty Crime 
• Made in Saskatchewan “Fund of Funds” 
• Removal of PST on new construction projects