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The Rural Voice, 1978-07, Page 15Rural news in brief Gordon Hill on tax reform Gordon Hill, past president of the Ontario Department of Agriculture gave some background on farmers and tax reform when he spoke in Sebringville recently. Since his speech, property tax reforms have been shelved indefinitely by provincial treasurer Darcy McKeough. Opposition to the provincial proposal had been expressed by the Huron County federation who were seeking support from Perth. It was hoped that meetings held at Sebringville and Atwood would assist the Perth Federation in making their own decisions with regard to the provincial government's proposal to declare farmland and farm buildings as non-taxable items. Sonie farmers thought this night lead to provincial control of their properties. Mr. Hill pointed out that as farmers have the deed to their properties they would not lose such control. It was his opinion that the payments of taxes do not increase the farmer's hold on his property. The only insurance is that the farm cannot be taken away and sold for non-payment of taxes. Where the government has control is on land severance and building on a property whether or not taxes are paid. Tax Revolt At the Sebringville meeting, Mr. Hill explained that in 1970 the Ontario Federation of Agriculture decided to instigate a tax revolt when farmers refused to pay the education portion of their property taxes. As a result. the governm- ment decided to pay 25 per cent of the farmers' taxes as a relief from the unfair school tax. in the form of a rebate. Two years later the rebate was increased to 50 per cent, a method followed for farm taxes ever since. Then the Ontario federation introduced a policy whereby farms would be taxed on their productivity, instead of their market values. This has been continued as a policy, but, as yet, a means of determining productive value has not been found. The government would not accept this policy so the federation present a shorter policy which was that farm land and farm buildings be classified as non-taxable items. Mr. Hill felt that this proposal would be better for the farmers than paying their taxes. Long Term He suggested that farmers should work towards the long-term policy of taxing farms according to their productive value. He thought that federation members should have the right to make policy and if they were not in accord with present Federation policy they should endeavor to change it. He told them that the Ontario Federation always felt that farmers paid more than their share of education costs through property taxes. Mr. Hill said that when property taxes were first imposed. landowners were highly taxed as a group because they had the money. This is no longer the case and just because farmers own large amounts of land it does not mean tnat tney nave the income to pay huge taxes on their properties. Reg Bailey, head administrator from the assessment division of the Department of Revenue's head office in Toronto told the farmers that the proposals were based on the premise that farmers should not be assessed and taxed on their entire properties but only on the residential portions. Sell east grain dealers are told East, not west, is the place to be promoting sales of Ontario grain feed dealers were told at a meeting in Chatham. Representative of the Prince Edward Island marketing commission John McAnulty told about 280 grain and feed dealers that the Maritimes are becoming an increasingly large market_for Ontario grain especially corn. He said that apart from P.E.I. which is self-sufficient in grain. the Atlantic provinces rely on the rest of Canada for most of their grain. In 1973, Ontario corn accounted for 7.5 per cent of all imported corn sold in the Maritimes. By 1976, this had risen to 35.8 per cent, he said. He said Ontario is in a good position to compete for the Maritime market with the west because it is closer to the east coast than the Prairies, making shorter rail hauls and lower freight costs. McKerlie Automotive All types of hydraulic hoses for hydraulic equipment Lincoln greasing equip- ment Quaker state oil and rease Fuel oil filters Hydraulic jacks Tools Batteries Car and implement paint. Main Street, EXETER, ONT. 235-1040 237-3519 (Dashwood) ZWAAN'S WELDING AND EQUIPMENT Bldg. 25 Winnipeg Rd. Vanastra 482-7931 Next to Bayfield Boats SALES AND SERVICE OF Livestock Racks Edbro Hoists Grain Bodies Fifth -Wheel Trailers General Repairs THE RURAL VOICE/JULY 1978. PG. 15