The House of Commons has approved a motion in support of amendments to the Saskatchewan Act of 1905, a part of the Constitution of Canada. 

In November, the Saskatchewan Legislature adopted a motion to make the amendment to the act by repealing Section 24. The vote to approve the motion was held by the House of Commons this past week, and it is now before the Senate.  

The section of the act that is now in process of being repealed is the centre point of a lawsuit between CP Rail and the Saskatchewan government. CP Rail is asking for a return of taxes paid to the province since 2002 to be returned, with a declaration that future taxes are not payable.  

Their argument is that the railway was exempt from certain taxes based on a contract between the federal government and CP Rails predecessor that was originally signed in 1880. The contract stated that in exchange for CP agreeing to build a transcontinental railway, they would receive the tax exemptions. The exemption was then made part of the Saskatchewan Act. 

The provincial government had argued in the courts that the tax exemption had been rescinded in 1966, in a letter from the rail company to the federal transport minister at the time. 

The motion to repeal the section is also retroactive to August 29th, 1966 – the date of the letter.  

"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. "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 provincial government also noted the repeal of the section will level the playing field when it comes to taxation for all businesses in the province. 

This will be the first time the Saskatchewan Act has been amended since it first came into effect in 1905.