Sask. government's proposed Constitutional amendment moving to the senate

MPs supporting Sask. in tax dispute WATCH: Saskatchewan’s conservative MPs are supporting the provincial government in its tax dispute with CP Rail. Wayne Mantyka reports.

The Government of Saskatchewan’s proposed amendment to the Constitution of Canada, connected to a recent lawsuit filed by Canadian Pacific Railway, was approved by the House of Commons.

CP Rail is seeking $341 million in tax refunds from Saskatchewan, citing an 1880 agreement that exempted the railway from paying provincial taxes.

The province is seeking to amend Section 24 of the Saskatchewan Act, retroactively to August 29, 1966. Section 24 of the Act holds an exemption for the Canadian Pacific railway from several Saskatchewan provincial taxes.

On Nov. 29, 2021, members of the Saskatchewan Legislative Assembly passed a motion to amend the Saskatchewan Act and the Canadian Constitution.

After passing through the House of Commons, the amendment will now move to the Senate, where it could be proclaimed in force by the Governor General and become law.

"I would like to extend our sincere thanks and gratitude to the Members of the House of Commons who voted in support of this motion to amend the Constitution," Justice Minister and Attorney General Gordon Wyant said in a news release Wednesday.

"This change will ensure that all Saskatchewan taxpayers, both citizens and businesses alike, continue to be fairly treated and bear responsibility for provincial taxes which support our provincial infrastructure and economy."

The province said repealing Section 24 will “level the playing field for all businesses, while supporting Saskatchewan's autonomy and cementing its place as an equal partner in Confederation.”

In a motion to the House of Commons on Dec. 3, Regina – Lewvan MP Warren Steinley asked the government to make changes to the constitution that would undo CP Rail’s exemption from Saskatchewan’s provincial taxes.

Steinley argued it would be unfair for a large corporation to be exempt from provincial taxes, casting the burden onto Saskatchewan residents, small businesses and producers. He also said it would be inconsistent given the province is now an equal partner in Confederation.