For TCU Place, one of Saskatoon’s biggest venues for concerts and shows, the province’s expansion of the provincial sales tax (PST) to include admission and entertainment charges was disappointing and “100 per cent a surprise.”
In the provincial budget released Wednesday, the province announced the current six per cent PST will be expanded to include admission and entertainment charges effective Oct. 1, 2022.
“This was coming out of the blue and was a surprise that we could have had some conversations ahead of time that potentially may have just shed some light on the situation,” CEO Tammy Sweeny said.
“I’m also disappointed in the outcome and again, yet another blow to this industry that will prevent or impact the recovery of this industry in Saskatchewan.”
Sweeney says venues like TCU were hit hard during the pandemic, and the PST expansion will provide more hurdles to clear in a recovery.
“Consumers may think twice, obviously their dollars are tight right now as well so it will impact them,” she said.
Sweeny says that for promoters and tour organizers that are looking at where to have their shows in Canada, Saskatchewan will be the only province in Western Canada that charges PST on tickets.
“It’s Saskatchewan, it’s not always the easiest market to attract some of these tours to begin with. And now we’re yet adding one other obstacle, so it is a bit of a challenge.”
City of Saskatoon general manager of community services Lynne Lacroix says it was surprising for the city as well, but is glad the implementation date isn’t until October 1, 2022.
“That does give us at least the time we need to do that review and make sure that we have all the details accurate, so we can communicate with the public and also do a presentation or update through city council,” she said.
Lacroix says adding PST charges for a swim meet at the Shaw Center or a track meet at the field house isn’t so cut and dry.
“Those are traditionally offered by registered nonprofit organizations, so whether they’re the local sporting body, the provincial sporting body, or the national, those are hosted by nonprofit organizations,” she said.
“But the catch is, and this is one we’ll have to dig into, will our rental rates at our leisure centers need to now include PST so the rent rate that we charge to those groups that host the swim meets may indeed need to include PST,” she said
“That’s one of the items we really need to dig into as the exemption does indicate those activities offered by nonprofit organizations will not need to have PST applied to it.”
Lacroix says the city has already set rates and fees for the next two years after approval of its own budget and any rate and fee changes require council approval.
“Our typical rates and fee increases for admission or rental rates is three, at most four per cent,” she said.
“So to have to have a 6 per cent increase built into what we were already planning as a three or four per cent increase, that starts to have some impacts on patrons using the facilities and those renting them.”
Ward 9 Coun. Bev Dubois says council was not aware of the PST expansion before it was released.
“As I understand it, our city administration will be bringing a report to city council at some point here in the near future to show the impact of what it’s going to look like for the residents of Saskatoon,” she said.
“We all know that our groceries are costing more, gas is costing more, I mean it’s another cost that folks will have to pay to utilize those services. And so whenever you’re looking at any kind of a cost increase, it’s not always the best thing, but on the other hand it sometimes has to be done in order for the governments to pay the bills.”