The Saskatchewan Party introduced the Income Tax (Affordability) Amendment Act, 2022 to the Provincial Legislature on Nov. 2 to implement two initiatives announced earlier this year as part of the province's Four-Point Affordability Plan.
The $500 cheques created a huge stir when they were announced. "Sometime this fall," was the only estimate available at the August 23 announcement.
According to Wednesday's news release, the cheques will begin to be distributed the week of Nov. 14. Eligibility for the affordability cheques has been restricted to Saskatchewan residents aged 18 and older as of Dec. 31, 2022, and who have filed a tax return in the province for the 2021 tax year.
Approximately 900,000 cheques will be mailed out at an estimated cost of $450 million.
The Income Tax (Affordability) Amendment Act, 2022 will incorporate the Saskatchewan Affordability Tax Credit (SATC) into income tax legislation.
"The SATC will help Saskatchewan people facing rising costs due to inflation," said Donna Harpauer, deputy premier and finance minister.
The other introduced measure will delay the restoration of the small business tax rate until July 1, 2024. It maintains the 0 per cent small business tax rate retroactively to July 1, 2022.
"Extending the small business tax rate reduction by another year provides further support to small businesses aas they continue to recover from the pandemic, while facing new challenges such as inflationary pressures, interest rate hikes, supply chain issues, and labour shortages," Harpauer said.
About 31,000 incorporated small businesses will benefit from the measure. The province's estimate is that the tax relief will cost approximately $93 million over the next three years.
Saskatchewan is tied for the lowest small business tax rate in Canada and the highest income threshold at $600,000.
The Four-Point Affordability Plan includes a reversal, in part, on the province's PST expansion. The PST expansion, which went into effect Oct. 1, will no longer include gym and fitness memberships.
The final point is the planned retirement of up to $1 billion in operating debt this year, made possible by a strong economy and record profits in the resource sector.
More information is available on the province's website at www.saskatchewan.ca/residents/taxes-and-investments/tax-credits.
