Reason For SAMA Information Sheet Leaves Council Guessing

By Robert Thomas

The reasons behind a Information (Fact) Sheet sent by the Saskatchewan Assessment Management Agency (SAMA) to Council had Monday's meeting guessing what it was all about.

With no introduction as to the reason why the letter was sent Administration's report left it up to Council to decide the reasons for it.

Whatever the real reason was if SAMA thought they would win over Council's hearts and minds the majority of responses from Council suggest the effort widely missed its intended mark.

Please note in this story Information Sheet and Fact Sheet are one in the same - Fact Sheet is used for author and reader convenience.

Councillor Dawn Luhning, who returned from holidays after being absent at Council's January 9th meeting, said the Fact Sheet carried a message not annunciated by Administration.

“I appreciate this is here. What I do find interesting is that Administration hasn't really provided, I know SAMA asked you to do this, but I think there is more to do with that,” Councillor Luhning said.

She said she thought it had to deal with inaccurate media reports and some business owners not correctly portraying SAMA's role in assessment and taxation.

“And I think it has to deal with the concerns coming from some of the business property owners and the information that is being reported in the media. And the mix of lines between who is responsible for what,” she said.

“In particular SAMA being responsible for assessments and the City of Moose Jaw being responsible for taxation. There is a lot of crossover in these reports and even in some of the comments being made by some of the business owners where things are getting a little bit confused.”

Although Councillor Luhning did not know the exact reasons for SAMA wanting the Information Sheet shared to Council she guessed it was an attempt to clarify SAMA's role.

“My guess this is a request from SAMA to try and get some corrected information out there as to how SAMA's business is done and how assessments are provided. And to try to unblur some of the lines that are out there with what is going on with some of these properties,” she said.

City manager Jim Puffalt said the fact sheet was likely sent to get SAMA's side of the story out.

There have been many news stories about the commercial property assessment and taxation issue in local and Regina media outlets.

Nobody from SAMA attended the meeting.

Puffalt's comments came after Property Assessment Watchdogs presentation at Council's January 9th meeting.

The group has not only appeared before Council but held rallies to explain their position to the community.

Additionally they have given media interviews with SAMA responding in the story.

Most recently Kristy Van Slyck sent a letter to SAMA's CEO requesting a Secondary Audit be conducted.

MJ Independent ran a story about the letter and invited both SAMA and Mayor Clive Tolley's office to comment on it but did not receive a response from either.

SAMA did however answer questions from MJ Independent with a Media Fact Sheet and a response about a manager's activities on social media about the issue.

Puffalt said the Fact Sheet was sent out by SAMA “to assure Council they take assessment very seriously.”

In the lead up to that meeting Property Assessment Watchdogs released a professionally produced video on YouTube which had thousands of people view it.

Puffalt said he believed it was sent to Council because of something in the newspaper about a week ago.

Councillor Heather Eby said SAMA's letter had done nothing to change her mind on the issue commercial property assessments.

“It's here it is on record. I will be 100 percent honest for me when I read this it didn't shed anymore light on anything to me as far as the issues that have been brought before us about the comparable assessments (between) buildings really doesn't make sense,” Councillor Eby said.

She went acknowledged the blurring between the roles of creating assessments and taxation but SAMA had yet to provide her with satisfactory answers on commercial property assessments.

“I understand people get lines blurred but I still haven't, my questions haven't been satisfied through what we have received here.”

Councillor Crystal Froese said she agreed with Councillor Eby that there was no further information about the issue regarding commercial property assessments.

“This is kind of a high level view of what we know SAMA does. I'm just wondering if we had any response regarding the secondary audit?” Councillor Froese asked.

Puffalt said SAMA wanted to move as quickly as possible on the issue.

Councillor Kim Robinson said he agreed with Councillors Eby and Froese.

“(SAMA has) had multiple opportunities to tell their side of the story…I don't see it, the purpose in this. Certainly receive and file,” Councillor Robinson said, adding “I think we need more concrete answers than this is how we do it.”

SAMA's Information (Fact) Sheet

In their fact sheet SAMA explained its role as the assessment agency.

SAMA is the contracted assessor of property valuations - independent of the City - while the City through Council decides what the final property tax bill will in the end be.

SAMA's fact sheet states their only role is to provide an accurate value and assessment of properties.

“SAMA has no vested interest in any one type of property having their value increase or decrease. Our only concern is trying to accurately capture the value of a property,” the fact sheet stated.

The fact sheet goes on to state SAMA has no authority over Boards of Revision (BOR) or over top of how a municipality chooses to set their milrate.

“SAMA directly supports municipal economies in Saskatchewan through the provision of assessment services (the foundation of municipal property tax revenues). However, SAMA has no authority when it comes to taxation, , or the implementation of mill rates,” SAMA's fact sheet states.

In an earlier fact sheet released to the media SAMA stated when commercial property assessments change there are special tax tools provided by the Province only cities have access to.

The tax tools can alleviate rapid changes in commercial property taxation.

SAMA also denies they have anything to do with the selection of the new Board of Revision (BoR).

“For 2022, Moose Jaw set up a new local BoR. The decision to change the local BoR was made by the City of Moose Jaw. SAMA has no part in making decisions related to the selection of local Boards of Revision.”

SAMA goes on to state in determining commercial property values sales are used.

The sales figures and assessment valuations resulted in multiple Capitalization or Cap Rates.

“The sales in Moose Jaw did not support a single capitalization rate (cap rate) model. Cap rates reflect the sales that have occurred in the local market and are used to determine property assessments.”

Moving from a single to 17 Cap Rates for commercial properties is a major concern raised by the group Property Assessment Watchdogs.

The group has been calling for a single Cap Rate.

SAMA's Fact Sheet in its entirety can be viewed below.

In the end Council voted 7 - 0 to receive and file SAMA's letter.