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The Rural Voice, 1999-07, Page 49BRUCE Email: bruce@ofa.on.ca County Federation of Agriculture NEWSLETTER 446 10th St., Hanover, Ontario N4N 1P9 519-364-3050 or 1-800-275-9551 • The Rural Voice is provided to Bruce County Farmers by the BCFA. Farm Property Transfers and the Farmlands and Property Class In the past, all farmland was taxed at the full residential rate, and then landowners were issued a rebate for 75 per cent of this amount. If the property ownership changed during the year, therebate might still be sent to the former owner, based on OMAFRA's records. Buyers and sellers of farmland were aware of this, and could adjust for the value of the rebate in the purchase price of the land. Now, when farmland ownership changes during the year, no adjustment for property taxes should be necessary, because the land is already taxed at the reduced rate. In some cases, however, farmers buying land may find the land classification changed from farmland to residential/farm after the ownership is transferred. The reason is that property assessors may not know the new owner is going to continue farming the land. If there is any uncertainty about this, the assessor may put the property back into the residential/farm class instead of leaving it in the farmlands class. This classification change results in the property tax rate increasing to the full residential rate (a four -fold increase in property taxes). If you are considering buying farmland, you need to be aware of this potential problem. First check that the land you are buying is currently in the farmlands class. If not, the property taxes will be at the full residential rate for the remainder of the year. If the land is in the farmlands class and you are going to continue farming it, then you can ensure that it stays in the farmland class by contacting your local assessment office to let them know that the land is being bought by a farmer and will continue to be farmed. If the assessors know this, they can leave the parcel in the farmlands class. If the land is put into the residential/farm class after the 46 THE RURAL VOICE ownership transfer, a supplementary assessment should be issued to the new owner, indicating that the classification of the land has changed. From the time the supplementary assessment is issued, the new owner has 90 days to appeal the reclassification. If you are buying farmland this year, be sure that your local assessment office knows what parcels you are buying, and that you will continue to farm them, so .that the land will not be reclassified. If you do receive a supplementary assessment putting the new farmland into the residential/farm property class, do not delay; contact OMAFRA at 1-800- 469-2285 to initiate a Request for Reconsideration, or file an appeal with the Assessment Review Board right away. In addition to ensuring that the farmland you buy is taxed at the reduced rate in the year you buy it, you must also make sure that you apply for the farmlands class for the following year. Currently, OMAFRA is not required to send out applications for the farmland property class to individuals who purchase farmland during the year. If you buy land, you should contact OMAFRA to apply for the farmlands property class for the following year. Notes on the Farmland Property Tax Class Application and Property Transfers There has been some confusion about applying for the Farmlands Property Class, and Farm Business Registration. The responsibilities of farmers in ensuring that their IMPORTANT NOTICE!! Deadline for Farm Business Registration Program and Farmland Property Tax Program is AUGUST 31, 1999 in order to be eligible for the 25% Farmland Tax Rate in 2000 Contact OMAFRA at 1-800-469-2285 for more information. properties are in the farmlands class, the importance of application deadlines, and the process I'M - appealing the classification of farmland have not been communicated well by OMAFRA. In addition, very little flexibility has been offered in the application and appeal process. As a consequence, many farmers have found that they are paying the full residential tax rate on their farmland this year. The Classification of Farm Property When property is assessed, two things are determined: 1) The value of the property, 2) The appropriate property class. Land that assessors deem to be farmland can be put into either the residential/farm property class or the farmlands property class. The residential/farm property class is taxed at the full residential rate. The farmlands property. class (the new class for farmland that previously was eligible for the farm property tax rebate) is taxed at 25 per cent of the full residential rate. For assessment purposes, the residential/farm class would normally apply to farmland, unless the land is owned or rented by a farmer with a valid farm business registration number. If the parcel is associated with a valid farm business registration number, the assessor will put the land in the farmlands property class so that it is taxed at the reduced rate.° - Submitted by Pete Canning Carrick Twp. Director PLEASE NOTE! BRUCE COUNTY FEDERATION OF AGRICULTURE Directors' Meeting for July as been cancelled Next meeting will be August 23, 1999 © 8:00 p.m. OMAFRA Boardroom, Walkerton Members are welcome to attend L