The province says it will make good on a promise to cut Saskatchewan's education property tax in the upcoming budget.
The agricultural mill rate will be reduced from seven per cent to just under four per cent, and one point of the provincial sales tax will go to municipalities.
Finance Minister Ken Krawetz made the announcement in a speech at the Saskatchewan Association of Rural Municipalities convention in Saskatoon on Wednesday.
"Once fully implemented in the upcoming budget, the education portion of property taxes on agricultural land will have been reduced by a total of 80 per cent," Krawetz said in a release.
"This includes an additional $31.3 million reduction in 2011. At the same time, we are committed to a corresponding increase in the provincial share of education funding."
As a result of the changes, provincial funding to rural municipalities and organized hamlets will increase to $62.9 million in the upcoming budget, up $14.3 million from last year.
