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The Rural Voice, 1978-06, Page 9The Voice of A Farme by Adrian Vos The proposals for a change in property taxation, have stirred the emotions in Huron county, from both the pros and the cons of the proposals, considerably. The history of property taxation discussions began in the late sixties, when it became evident that the farmer paid a disproportionate share of the burden of education taxes. The NFU and the OFA both pressed strongly for removal of education cost from property taxes. Early in the seventies they succeeded by receiving a rebate of half the property taxes, and there it stands today. The farmers are generally satisfied with the status quo, both the Ontario government is not. TEIGA under Darcy McKeough devised a different approach and send the Blair commission around the county, not to hear what the people think about it, but to defend the white paper. The proposals were roughly what they are today, namely to leave the whole principle of property taxes intact but do some doctoring. As far as farming is concerned, it means that the tax burden shifted somewhat from the land to the house and the government would pay the taxes (based on the market value) of the land. The farmer would pay all the taxes on the house. This raised immediate opposition from all farmers as they claimed that he who pays the taxes will ultimately own the property. Mr. McKeough then made a change and proposes now that his department doesn't pay the tax. Instead there will be no tax against the land at all and the township will be compensated by a grant of the same magnitude as the taxes would have been, based on the market value of the land in total. The OFA had proposed this to the government, together with the demand that productive value be used for property taxation instead of market value. This all must be legislated in law, so no subsequent government could claim the property because of the owner not paying taxes. The reasoning behind this is that in areas close to urban centres the market value is way out of proportion to its means of - earning. In more rural areas, such as Huron, Grey and Bruce counties, this difference is negligible. Lately there has sprung up a grass roots movement that expresses a growing concern that there is no difference between the government paying the tax or paying a grant in lieu of the tax. It started out as a one man campaign by Mr. George Underwood of Turnberry township in Huron county and has grown to such proportions that the Huron county federation voted to change their stand and to revert to the original stand that people taxes be paid by people and property taxes be paid based on the benefit to the property. The fear, as expressed by the Underwood group and the majority of Huron farmers as represented in the May federation members' meeting, is that if we let the government pay the taxes the government can tell us what to grow on the land and what to do with the land, encroach upon the land and act as the owners of the land. The opposing group argues that no matter who pays the tax, the landowner still has the deed, and this is what really counts. Besides they say, look at the government now. They and their agencies tell the landowners on the Niagara Escarpment what colour to paint their houses and when and where to plant trees. They can't build on their land where and when they want and can't cut down a tree if they so desire. Ontario Hydro places transmission towers on the land and all the landowners have paid their taxes. What then is the difference? This whole debate has taught us a very valuable lesson. It has told us that much of this controversy could have been avoided if the members had expressed their opinions when the policy was decided in the first place. It taught us that it pays to attend the monthly federation meetings. Just as important, it shows what ■ one man can accomplish if he is determined. Mr. Underwood could as easily have said: I am dead set against that OFA policy rso I am going to cancel my membership. Instead he decided to ,fight for his principle. So far he has won. He overturned the policy of the powerful Huron federation. He made the Perth federation if not to reverse its stand at least not to support OFA on this anymore. He has gained a Ibt of support. This teaches us - what organization is all about. Some have been reported as saying that they would cancel their membersfiip if they don't get their way. This is mindless and narrow thinking. It means picking up the puck and going home, regardless of the number of goals our club has scored, because one goal went into our own net. This whole mess shows us the anomaly of the property taxation system. Before the advent of the income tax this was a valid principle, for possession of property and of income were synonymous. But today this doesn't hold true anymore. The original stand of the OFA is the most equitable of all. Let's quote David Lewis Stein in the Sunday Star on market value. "...market value assessment taxes people on money they have not earned yet. Suppose you bought your house for S35,000 and now they tell you it is worth $75,000. You're going to have to start paying taxes on that $75,000 even though it's money you haven't received yet and may never receive...(property tax) makes city governments into real estate speculators." He goes on: "There is a better way: A mumctl,ai tncome tax. One of the background papers to the Robarts Commission estimated that if the people who live and work in Metro paid a five percent surcharge on their income tax, Metro would probably get just as much money as it does now from property tax...At least it is a tax on income that people really earned, not the potential values of their homes." I'm glad to see that city people are catching up on the progressive thinking of the farm community. ❑ JrE RRITS BARN EQUIPMENT Manufacturers -- Dealers Specializing in Complete Hog and Dairy Equipment DEALERS FOR: BADGER, ACORN, CLAY, FARMATIC CLINTON Drop in, call or write for quotes on your equipment needs. Qur quality and prices should help you decide. Compare and see for yourself. �4y HWY. 4. VANASTRA LONDON 1 RR 5, CLINTON 519-482-7296 "Practical confining systems for Tess." THE RURAL VOICE/JUNE 1978. PG. 9.