Government Relations Report Ron Steeves First Vice-President As part of the 2017 provincial budget, the government of Saskatchewan both raised the rate of the Provincial Sales Tax (PST) from five per cent to six per cent and applied PST to an increased number of goods and services…including travel medical insurance premiums. This change made Saskatchewan the only province in Canada to collect retail sales tax on premiums paid for travel medical insurance coverage. As you are aware, supplementary travel emergency medical insurance is a necessity for those who travel outside of Canada. Recognizing the limited emergency medical care coverage outside of Canada, the government of Saskatchewan actually recommends that residents travelling outside of the country obtain additional health insurance. In response, Director for Central Canada John Foster and Executive Director Michael MacKenzie met with the Saskatchewan Minister of Health – the Honourable Jim Reiter – to express our firm opposition regarding the application of PST to travel medical insurance premiums. During this meeting, they outlined our case that these premiums should continue to be tax exempt on the basis that travel medical insurance coverage is generally purchased from providers outside of the province and is purchased for emergency medical care which, if required, will be obtained outside of Saskatchewan. The CSA also emphasized the limited emergency medical coverage which the government of Saskatchewan provides to residents who travel outside of Canada, making supplementary private coverage a necessity. In addition, we asked our Saskatchewan members to participate in a write-in campaign contacting the premier and other members of the legislative assembly. In March, we were pleased to announce that Saskatchewan Premier Scott Moe will reinstate the PST exemption for agriculture, life and health insurance premiums, and that this exemption will be retroactive to August 1, 2017 – the date on which PST was initially applied to insurance premiums. We would like to thank Premier Scott Moe for implementing this change, as well as Minister of Health Jim Reiter for meeting with us and listening to our concerns about this policy. We would also like to thank all of our members in Saskatchewan whose e-mails and letters played a significant role in having the PST exemption reinstated. Finally, a big thank you to all who have supported our advocacy work by making a donation to our Special Action Fund which we depend on, especially for unplanned advocacy emergencies such as this one. In 2016, the City of Vancouver introduced an empty homes tax (EHT) of 1% of a property’s assessed taxable value on residential properties left vacant in an effort to address the city’s housing crisis. Under the Vancouver model, most homes are not subject to the tax as it does not apply to principal residences or those properties which are rented out for at least six months annually. Now, the City of Toronto is exploring the possibility of implementing a similar vacant homes tax on properties which are deemed “underutilized.” With thousands of CSA members residing in the City of Toronto, many of whom leave their properties unoccupied during the winter months, we are concerned about snowbirds in the city being unfairly targeted and taxed for simply exercising their right to travel. From a property rights standpoint, these homeowners pay property tax and adhere to all municipal requirements including bylaws and zoning rules. We believe that snowbirds in the city should not be faced with this choice: restrict their ability to travel or rent out their Toronto home in order to maximize their vacation time. In March, CSA representatives met with Toronto Mayor John Tory’s office to discuss this matter and convey the organization’s concerns directly. While the details of what such a vacant homes tax would look like remain unclear, the CSAwants to ensure that a principal residence exemption is included in any vacant homes tax proposal considered by the City. In the coming days, the CSA will be providing a formal submission to the City’s Executive Committee, outlining our position. We will be following this development closely, as well as monitoring other municipal jurisdictions across Canada which may consider imposing a similar tax on vacant properties. This year, there are provincial elections scheduled in Ontario, New Brunswick and Quebec. As always, we will be producing our provincial election handbooks ensuring that issues of importance to our members remain front and centre in each race. Welcome home. CSANews | SPRING 2018 | 11
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