Sask. gov't adding PST to most art, culture and sport events

The Saskatchewan government is raising the cost for people who want to attend big events or experience entertainment in the province.

A sweeping expansion of the provincial sales tax base was announced Wednesday with the release of the 2022-23 budget.

The changes come into effect in October 2022 and will see people paying an extra six per cent on ticket prices for big sporting events, concerts and professional theatre. 

The tax is also being added to movie theatres, museums, zoos and historical sites, as well as tickets for fairs, rodeos, trade shows and arts and crafts shows. Furthermore, it will be extended to people buying memberships to the gyms, golf courses and curling clubs. 

It will also be tacked on to hunting and fishing guide fees and outfitter services. 

Finance Minister Donna Harpauer said the expansion will generate about $21 million annually. She said it targets events and services already taxed under the federal goods and services tax (GST).  

Harpauer told reporters the expansion would not affect small groups hit hard by the pandemic. 

"It doesn't apply to your small town rodeos or events," Harpauer said." This is going to be bigger concert events, your Roughrider tickets. It's your larger events."

Tax expansion a surprise to industry 

The larger organizations directly affected were surprised by the expansion. The government did not conduct consultations prior to setting the changes in motion.

Tim Reid, president and CEO of Regina Exhibition Association Limited, said the organization was caught off guard. REAL operates "the largest interconnected event complex in Canada" and hosts a variety of sports games, farm shows, the exhibition and other big community events.

"The last two years have been the darkest time the industry has ever faced," Reid said in a written statement. "As the province's largest sport and entertainment district, this change will impact our business operations and entertainment goers." 

The Saskatchewan Roughriders shared a similar message. 

"As a not-for-profit sports team and despite rising inflation costs, we worked tirelessly to minimize the financial impact on our fans. Unfortunately, we know today's decision will impact many in our community who are looking forward to coming together on Rider game day and for the 2022 Grey Cup," said a team spokesperson in a written statement. 

They said the team would be in communication with CFL football fans once the extent of the impact is understood. 

"It's a cost increase at a time when we should actually be lowering costs for consumers," said Mark von Schellwitz, who works with Restaurants Canada. "We should be attracting people to get out and spend their money again after what's been a really difficult two years, so I think that sends the wrong signal." 

Where will the revenue go? 

Reid said REAL respects the government's budget formed in response to a pandemic, but added "there is currently a substantial infrastructure deficit in sport and entertainment facilities throughout Saskatchewan."

The organization is hopeful revenue earned through this PST expansion "will help address this need and be reinvested." 

Finance minister Harpauer did not make any promises about where the extra revenue would go, but said it was "interesting" that the province's surgical wait-list initiative costs about $20 million — in line with the anticipated annual revenue from the PST expansion. 

"If I said to a Saskatchewan resident, would you be willing to pay this for maybe the two concerts, and the Rider ticket, in order for us to address the very critical surgical wait-list … I think Saskatchewan people would support that." 

Politicians critical of PST decision 

Opposition finance critic Trent Wotherspoon said this tax expansion was another blow to Saskatchewan people and industries struggling because of the pandemic. 

He called the government out of touch with working families, saying it didn't make any sense for the government to add a tax onto "Rider games and concerts and rodeos and Agribition — on the things that will allow us to come together after the time we've had to be apart." 

Saskatoon Mayor Charlie Clark called the move puzzling.

"I was quite surprised that this is the year that was chosen to put PST on to those same industries that have been the most affected by the pandemic that have been basically shut down for two years," Clark said, noting he'd be talking with industry members to further understand the potential impacts of these changes. 

"They play a critical role in the vitality of our community and the culture of our community, the ability to have people come together and gather."  

Some exemptions in expansion 

The government said exemptions apply to tickets for school, university or minor league sports, amateur theatre productions that do not pay the artists and events put on by a public sector body.

Exemptions also extend to fees for youth programming, like hockey, dance and music, if the activities are run by a school or a non-profit.

Fundraisers where part of the cost of admission can reasonably be considered a donation to a charity are also exempt. 

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