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HomeMy WebLinkAboutZurich Citizens News, 1977-09-28, Page 9County council talks •bout tax reform By a show of hands, Huron County Council barely accepted a report of the executive com- mittee presented at the regular September session. Thursday in Goderich. The portion of the report which caused the con- troversy was the debate on tax reform in Ontario, in particular taxation on farmland. The Blair Commission recommends that farmers will pay taxes on their houses and "a reasonable amount of land" surrounding the house from their own resources, while 100 percent of the tax on the farm buildings and the farmland will be paid by the government. The recommendation of the executive committee was that farmers pay 100 percent of the taxes on their houses and the portion of land surrounding them, and that farmland, together with farm buildings be assessed at 100 percent of the market value with the farmer paying 10 percent of the resulting property tax while the remaining 90 percent is paid by the province. The committee also recommended that there be a proviso that the farmer be allowed to pay all or any portion of the taxes on the farmland and farm buildings, if he so desires. The executive committee, council was told, felt its recommendation to give farmers the choice to pay all taxes on all the property would be some protection for those farmers who had plans to sell their property for development purposes. It is understood that taxes paid on farmland by the government are forgivable after 10 years, providing the farmland remains as farmland. If, however, the farm is sold for development purposes, the farmer will be required to reimburse the government for the taxes which have been paid on his behalf, up to 10 years back. All property will be assessed at market value, it was stated, although there is no firm definition yet just how market value will be determined. There is also no definition of what "a reasonable amount of land" surround the farm home will be. Debate begins Paul Steckle, the deputy -reeve of Stanley Township, led off the discussion by questioning the entire premise of having any or all farm taxes paid by govern- ment. "I question whether we want to go this route," said Steckle. "I don't think there is a farmer in this room who wants the govermennt paying his taxes for him." Steckle alluded to the present system whereby 50 percent of the farmer's taxes are reimbursed to him because the government recognizes the fact that farmland should not pay for services to people. Steckle said he agreed that farmland should not help to pay for such services as education, health, libraries, social services, etc. but he suggested the system of tax Citizens News, September 28, 1977 Page 9 ZURICH PUBLIC SCHOOL STUDENT COUNCIL -- Student representatives and members of the executive for 1977 pose for the photographer. Front, left to right, are; Darrel Gingerich, grade 6; Angela Zehr, secretary, grade 8; Darlene Steckle, vice-president, grade 8; and Steve Consitt, grade 4. Second row, left to right, are; Greg O'Brien, grade 7; Jim Willert, president, grade 8; Bill Livingston, treasurer, grade 8; and John McAllister, grade 8. Staff photo deferrals or reimbursements was not the best solution since per- sons who were not really earning their livelihood from the farm were also classed as farmers and thereby received the special tax concessions. "We want to pay our taxes," Steckle told council. "Let's get paid for what we're selling and then we can pay them." Reeve Bill Elston of Morris Township agreed. He said he didn't like the idea of government paying any portion of farm taxes since it would lead to farmers losing control of their own land. "If government pays the bills, five years down the road government will be telling us what to do with our land," predicted Elston. "If we accept that, we're selling out the County of Huron." As a general rule, Elston said, rural and residential assessment will be up under the new system, while commercial and industrial assessment will be down. Reeve Calvin Krauter of Brussels defended the businessmen. He said there is "nothing fair about business assessment" because, Krauter said, the businessman pays a sur- , charge on his taxes regardless of the business he does. "I'm not arguing for me alone. I've heard this complaint for years from business people," said Krauter. "If everybody paid Please turn to Page 10 DISCOVER GREAT VALUE FOR OUR 4TH YEAR ANNIVERSARY SALE Boneless Pure 5 & 10 LB. 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