RENTAL HOUSING TAX REBATE WELCOMED
Association of Saskatchewan REALTORS®, News Release – For use 2:30 pm March 21, 2012
Saskatchewan’s new 10% tax rebate for investment in rental housing is being welcomed as a promising break-through in addressing the province’s housing shortage.
“Tax reduction lowers the key barrier that has kept private dollars from flowing into rental accommodation” said REALTOR® spokesperson Bill Madder. “This new initiative is a very positive step in the right direction.”
“The rebate on business income tax puts Saskatchewan in a leadership role nationally. Tax treatment of rental investment and income has been a major federal-level problem. Here we see Saskatchewan stepping outside the box to come up with a home-grown answer. ”
Mr. Madder said the incentive should draw new dollars into rental units.
“This is an effective way to use limited public dollars. The incentive will multiply itself, it’s stackable with municipal and other programs, and makes it more attractive to invest in rental supply at a time when this needs to be a central focus.”
Mr. Madder said details will need to be fleshed out, but the principle is precedent-setting. He said the private sector is being challenged with an opportunity to step up and begin to fill the backlogged need in rental supply.
“When price and lack of choice are the problem, the answer is more supply. This incentive uses public policy to attract private money to serve one of our most important public needs.”