The Saskatchewan government is increasing costs for people who want to attend large events or experience entertainment in the province.
A sweeping expansion of the province’s sales tax base was announced on Wednesday with the release of the 2022-23 budget.
The changes will come into effect in October 2022 and will require people to pay six percent more on ticket prices for major sporting events, concerts and professional theatre.
The tax is also levied on movie theaters, museums, zoos, and historic sites, as well as tickets to fairs, rodeos, trade shows, and arts and crafts shows. In addition, it will be extended to people who purchase memberships at gyms, golf courses and curling clubs.
It is also attached to hunting and fishing guide fees and outfitter services.
Treasury Secretary Donna Harpauer said the expansion will bring in about $21 million annually. She said it is targeting events and services that are already taxed under the federal Goods and Services Tax (GST).
Harpauer told reporters the expansion would not affect small groups hard-hit by the pandemic.
“It doesn’t apply to your small-town rodeos or events,” Harpauer said. “These will be major concert events, your Roughrider tickets. They are your bigger events.”
Tax expansion surprises industry
The larger organizations directly affected were surprised by the expansion. The government did not consult before launching the changes.
Tim Reid, President and CEO of Regina Exhibition Association Limited said the organization was caught off guard. REAL operates “the largest contiguous event complex in Canada” and hosts a variety of sports games, farm shows, the Expo and other large community events.
“The past two years have been the darkest time the industry has ever known,” Reid said in a written statement. “As the province’s largest sports and entertainment district, this change will impact our operations and our entertainment audience.”
The Saskatchewan government is expanding the provincial sales tax. (CBC)
The Saskatchewan Roughriders shared a similar message.
“As a non-profit sports team, and despite the rising costs of inflation, we have worked tirelessly to minimize the financial impact on our fans. Unfortunately, we know today’s decision will affect many in our community who are looking forward to coming together at Rider Game Day and for Gray Cup 2022,” a team spokesman said in a written statement.
They said the team will communicate with CFL football fans once the extent of the impact is understood.
“It’s a cost increase at a time when we really should be cutting costs for consumers,” said Mark von Schellwitz, who works at Restaurants Canada. “We should get people to get out and start spending their money again after two really difficult years, so I think that’s sending the wrong signal.”
Where does the income go?
Reid said REAL respects the government budget formed in response to a pandemic, but added, “There is currently a significant infrastructure deficit in sports and entertainment facilities across Saskatchewan.”
The organization is confident that the revenue generated from this PST expansion will help meet this need and will be reinvested.
Treasury Secretary Harpauer made no promises about where the additional revenue would go, but said it was “interesting” that the province’s surgical waitlist initiative cost about $20 million — in line with expected annual revenue from the PST expansion.
“If I said to a Saskatchewan resident, would you be willing to pay that for maybe the two concerts and the rider ticket so we can address the very critical surgical waiting list… I think the people of Saskatchewan would support that.” .”
Politicians criticize PST decision
Opposition finance critic Trent Wotherspoon said this tax expansion was another blow to Saskatchewan’s people and industries struggling because of the pandemic.
He called on the government to lose touch with working families and said there was no point in the government imposing a tax on “equestrian games and concerts and rodeos and agribition” – the things that allow us to go after the Time to get together we needed to be apart.”
Saskatoon Mayor Charlie Clark called the move confusing.
“I was quite surprised that this is the year that PST rolled out in the same industries that have been hardest hit by the pandemic and have basically been shut down for two years,” Clark said, noting that he would be speaking with industry members to better understand the potential impact of these changes.
“They play a critical role in the vitality of our community and the culture of our community, the ability to let people come together and gather.”
Some exceptions in the extension
The government said exceptions apply to tickets for school, college or minor league sports, amateur theater productions that the performers don’t pay for, and events hosted by a public body.
Exceptions also apply to fees for youth programs such as hockey, dance and music if the activities are run by a school or non-profit organization.
Fundraisers where part of the cost of entry can reasonably be considered a donation to a charity are also exempt.
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