On May 31, 2017, the Saskatchewan government issued Information Notice IN 2017-10, “Information for Businesses Operating in Lloydminster, Saskatchewan: Provincial Sales Tax and Liquor Consumption Tax”, to update the specialized rules for this city, as a result of the PST changes announced in the provincial budget on March 22, 2017. Lloydminster, Saskatchewan, due to its proximity to Lloydminster, Alberta, has had unique PST rules for years, including an exemption for sales to individuals or businesses of goods and services that are intended to be used within city limits.
The information notice has been updated to notify taxpayers that PST does not apply to construction materials and certain services in relation to real estate projects within city limits. This effectively extends the exemption to construction projects within Lloydminster, despite the change announced in this year’s budget making PST applicable to real property services.
The bulletin also clarifies that insurance contracts in Lloydminster, Saskatchewan, will be subject to PST on or after August 1, 2017.