Delegates at SUMA's annual convention in Regina voted on 20 different resolutions Monday. (Twitter/SUMA)

By Michael Joel-Hansen

SUMA 2020

Construction industry reacts to resolution

Feb 4, 2020 | 2:25 PM

The province’s cities, town and villages are calling for the provincial government to make a change to the tax system.

The Saskatchewan Urban Municipalities’ Association (SUMA) passed a motion calling for the Government of Saskatchewan to remove the provincial sales tax (PST) from municipal construction projects. The resolution was passed at SUMA’s annual convention Monday in Regina.

Mark Cooper, Saskatchewan Construction Association’s (SCA) president and CEO, said they support the call from SUMA.

“From our perspective it doesn’t make a lot of sense for governments to tax each other and that’s what PST on construction for infrastructure does,” he said.

Cooper explained the sales tax is also an issue as when the province contributes 30 per cent of funding for a project, a percentage of that money is basically clawed back by the expanded sales tax.

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Cooper said his organization would like to see PST removed from all construction, but added it might not be possible to have it completely removed. He added they understand the tax was introduced in order to help balance the budget.

“We understand their priority to do so, while we don’t support that tax, we get that the province has a lot of different priorities they’re trying to juggle,” he said.

With the adoption of the resolution SUMA now has a mandate to lobby the provincial government to remove the tax. Cooper said having another group working to make changes will strengthen the effort.

Dan Yungwirth, second vice president with the Prince Albert Construction Association, said having the PST on construction projects adds some real costs. Yungwirth said the proposed Rose Garden Hospice is a good example.

“Any money that they spend on that project in PST could be better spent on furniture for those suites and supports for the families that are going to need that really necessary facility,” he said.

Yungwirth said the local industry is more optimistic than they have been recently as the new arena and hospice projects are not far off. He added while the PST has made business challenging, there are other issues for the local industry.

“I would say that economic development as a whole is greatly needed in our community,” he said.

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MichaelJoel.Hansen@jpbg.ca

On Twitter: @mjhskcdn