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The Rural Voice, 1983-03, Page 25IN THE NEWS OFA REPORT After many years of discussion and lobbying between OFA and the provin- cial government, Agriculture Minister Dennis Timbrell, announced at the OFA annual banquet in November, property taxes on farm property would be re- bated. This announced policy is to replace the fifty per cent rebate present- ly being paid to farmers. This policy was a major achievement of OFA in the early seventies. It has saved farmers in Ontario millions of dollars over the last ten years. OFA was able to persuade the government 10 make this change because it was easy to demonstrate that farmers were paying an inordinate share of municipal taxes. There are two serious flaws in this policy. It was introduced by an Order In Council, which means it was a cabinet decision, not supported by any legislation, there- fore, it could be rescinded or changed at the whim of cabinet at any time and it had to be renewed each year. For several years, OFA has been negotiating with the government for a more secure method of fairly levying municipal taxes in rural Ontario. Municipal taxes pay for services to people in the municipality. All people living in a municipality require about the same services whether they own a half acre lot or a five hundred acre farm. The large land owner does not necessarily have a greater cash flow to pay those taxes indeed, probably the reverse the case. Since farmland re- quires little or no services, the govern- ment agreed to exempt farmers from paying property tax on the agricultural portion of their assessment. Instead, they would pay the municipalities a grant based on the agricultural assess- ment in the municipality. This would have been a major achievement for Ontario farmers, putting them on a similar base as several other provinces that do not levy taxes on farm property. Many rural municipal officials viewed this idea with alarm. It appeared they would lose a large part of their assess- ment base. This caused the proposal to be delayed over a year and to be changed to a rebate to the farmer of the taxes accruing from this agricultural property assessment rather than that portion being tax exampt. While viewing this change as a less desirable compromise, OFA urged the government to proceed, so farmers would have a legislated, fair policy to base the payment of their municipal taxes. The new policy is designed to return approximately the same number of dollars as the fifty per cent rebate, perhaps marginally more. The farmer will be paying taxes on the assessment of his house and a deemed lot. In order for him to qualify for the rebate, he will have to earn a gross income of twelve thousand dollars. Not high but a serious obstacle for people in some areas. OFA has not agreed to this and will continue to work for a more equitable qualification level. It has been brought to my attention there are some people vocally opposing this taxation policy change. Under the new policy, the government will not be paying farmers taxes; nor is there any basis for fearing any loss of property rights. The ownership of property is recorded on the deed and is registered at the registry office. In summary, this proposal is de- signed to; provide an equitable tax system for bona fide farmers; provide comparable tax treatment of farm resi- dences and similar residences in the same community and remove the dis- torting influence of farmland from the equalization process used for distribu- tion of Provincial grants. Non-residents of Canada will not qualify. We have not yet seen the Govern- ment's final draft of this legislation but hopefully this outline of the proposals will help people to assess the policy more objectively. Merle Gunby, OFA Director Top Quality Bred Gilts Large selection of York/Landrace bred gilts with accurate breeding dates. All gilts guaranteed bred and reasonably priced. Closed herd with mother herd being R.O.P. tested. Herd has a reputation for sound legs and excellent mother ability. Open gilts ready to service also available. All gilts vaccinated. New Addition Gilts bred to Purebred and R.O.P. approved boars designed to be herd improvers for the commercial producer, now available. References and herd health information available on request. Lawrence Vanden Heuvel R.R. #2, Goderich, Ont. 519-524-4350 PUREBRED YORKSHIRES & LANDRACE fired iIt� R ( ) f' 1 e,,tt'ti MAITLAND MANOR FARM Bluevale, Ontario Don I fenry 5 55- 52411 lic)h Ric hardurn 535-376ti Licensed Repairs to Heavy Duty Trucks Light Trucks Cars Farm Equipment Diesel, Gas or Propane Our shop is equipped with a pipe bender for custom exhaust systems and a MIG welder for aluminum welding. B & L Enterprises R.R. 1, Bluevale 335-3849 Barry Gillespie 357-1600 Les Brewer 887-9272 Located on Huron County Road 12, 1.2 miles East of the Diesel Car Diner on Highway 86. THE RURAL VOICE, MARCH 1983 PG. 25