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fore, it could be rescinded or changed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