HomeMy WebLinkAboutThe Lucknow Sentinel, 1997-03-19, Page 34Pau. 18 -Farm Progrsss'9i
Removal of farnn tax rebate concerns municipalitie
by Andy Bader
ural municipalitiess could
be at a.disadvantage with.
the removal of the farm
tax rebate, Perth MLA Bert
Johnson 'admitted to delegates
of the Perth. County Federation
of Agriculture (PFA) recently.
•"Provincewide, it is a set-off,
• • and we realize it won't work out
at every municipality," he said.
It has created a great distur
bance for, rural townships,
"great disturbance" may be
an understatement.
The Township -.of Grey, in
Huron. County, has. circulated
letters of protest to neighboring
•municipalities in .search for sup -
Tort. Clerk -Treasurer .Brad
Knight said the council has.
received a half-dozen letters
backing their stance, all from
Huron.
The township circulated let-
ters to Huron MPP Helen Johns,
Perth MLA Johnson and Noble
Villeneuve, Minister of.
Agriculture, Food . & Rural
Affairs '(OMAFRA) expressing°
their concern that the proposed
25 per cent mill rate has the
"potentixal to bankrupt rural
tt�unlcipalities.'",
The 25 per cent mill rate,
although beneficial to the agri-
cultural eortnunity in the short
term,. cuts :deep into rural
municipalities coffers because
of reduced taxation. Across.
Ontario, rural Municipalities
willbe losing up to $170 mil-
lion in property taxes as a result
of this. reform. With the down-
loading of
o vn-
loading.of responsibilities such
as policing,library ftinding and.
half of welfare still up in the air,
the impact of the 25 per cent
mill rate on rural municipalities •
and. their ability to provide ser-
vices: will be jeopardized,
In Grey Township alone,
Knight says, more than half of
their total assessment is farm
land, reducing their taxation
revenue by more than 41 per
cent. ,
Knight argues that more
"intense livestock" operations
are being created every day: on
farm: properties that require as
much or more of local services
than a residential propertywith-
in a hamlet. •
`For those with a big hog
barn to pay only 25 -cents on the
dollar; that's criminal, Knight
said;
Johnson told :the PFA the.. $1
billion community. 'reinvestment
fund available. to "top up"
municipalities ;who fall short in
the projected saw -off will be
available, reiterating the govern-
ment's positionon the issue
ever .since they announced this
and other downloading of ser-
vices during January's.
megaweek.
"Our stance is make sure the
money is transferred to those
that need it," Mary ,McIntosh,
past president of the PFA, told.
Johnson.
"Farm groups will be helping
rural municipalities get their fair
share of these new funds," said
Elbert van, Donkersgoed, the
research: and policy director of
the Christian Farmers
Federation of Ontario (CFFO).
"There is a ,substantial
provincial interest in protecting
primary, agriculture and rural
communities," he said.
Knight argues that that view
is perhaps shortsighted, even if
the OFA :and• the CFFO has lob-
bied for years to end the farm
tax rebate. „
• "For these farmers trying to
compete with.a corporate farm.
operation, I'm afraid you're
going to' find it tough sledding,"
he said.
"1 don't disagree with the
OFA's position, buts don't think
they've looked enough: at the
long, tuna,"
. He adds that it is Grey
Township's view that simply
relying on the reinvestment fund
for support is also a wrong
move. , ,
"Provincial programs, in
times: of budget constraints are
subject to cutbacks,and the
community reinvestment fund
may be no different," he said.
Some type of tax reform
beyond' simply removing the .
education levy from the tax bill
should be considered, the
Township of Grey suggests.
Perhaps the province and/or
municipalities. could reduce the
assessment or rebate part of the
taxes, on: the farm residence,.
land 'and outbuildings would
continue to be assessed and
taxed on its fair market value
for agriculture,
Another suggestion would be
to: allow municipalities to tax
farm land. within . a "range" of
'something greater than 25 per
cent:
The farm tar rebate was
implemented in 1970 after a
concentrated lobbying campaign
by farmers. Farmers were
required to pay 100 per cent of
their municipal taxes, but then.
could apply. for a rebate of 75
per cent of that amount from the
province That meant the full.
amount went,to the local munic-
ipalities' and h'e province subsi-
dized:the difference.
Approximately. 100,000
farmers take advantage of tti
program each year, which'. paid
out $143.5 million in 1996,x:7