The Rural Voice, 1983-12, Page 22OFA REPORT
Tax Rebate
•
•
Ontario Agricultural Minister
Dennis Timbrell announced on Nov-
ember 10 that the Ontario Cabinet
has abandoned the "100 per cent
property tax reduction program",
claiming that new assessment data
compiled by assessors from the
Treasury Department indicated more
people would be disadvantaged than
original estimates had indicated.
Timbrell made the announcement
at a special meeting of the Ontario
Federation of Agriculture Board of
Directors, where OFA president,
Ralph Barrie explained that senior
OFA officials had been informed, in
confidence, of the decision about a
week previously. Since then they had
worked to salvage as many benefits as
possible from the program.
Timbrell said a new program,
beginning in 1984 has been approved
by Cabinet. This program will be
similar to the current "50 per cent"
rebate program but will be based on a
60 per cent rebate and several
Peebles
Farms
Yorkshire/Hampshire
Hybrid Gilts
Purebred Yorkshire &
Hampshire Boars
R.O.P. Tested
DOUG PEEBLES
R.R. 2, Atwood
356-2369 356-2230
Anv time After 6 p.m.
PG. 20 THE
RURAL
FARM NEWS
beneficial features rescued from the
scrapped program.
Many OFA directors were out-
spokenly critical of the cabinet's
action, claiming the figures presented
by Timbrell were far from complete
and did not show significant differ-
ences than they had originally antici-
pated. Some OFA directors indicated
they felt the decision demonstrated a
lack of government's political cour-
age to proceed with any form of
property tax reform. They explained
that the "100 per cent" program had
been a slight move in the ufrection of
tax reform because it was an attempt
to have everyone, farmer and non -
farmer alike living in the same area,
pay taxes on a similar basis for similar
services.
The OFA directors approved a
resolution accepting the new proposal
with some reservations but urged the
government to set up a mechanism to
continue to work for real property tax
reform.
Merle Gunby
OFA Executive Committee Member
New 1984 Ontario Farm Tax Reduction Program
1. Rebate will increase from 5007o to 6007o of total farm property tax bill.
2. Assessment rolls will be returned as in the past.
3. Farm residence will be assessed with farmland and outbuildings as in
past.
4. Gross production level in central and southwestern Ontario remains at
$8,000 level; drops to $5,000 in northern and eastern Ontario.
Gross production levels will be reviewed annually but not
automatically adjusted.
5. Farmers not meeting gross production level due to abnormally low
crop yields, abnormally depressed prices or products with lengthy
maturation will still be eligible.
Farmers not meeting gross production level due to old age, illness,
death of a spouse will still be eligible providing
• still living on farm
• eligible for rebate in preceding 10 years
• farm income exceeds off -farm income (excluding pension/ -
investment).
6. Farm Tax Rebate Appeal Board to be established will hear appeals
from farm owners who do not meet Program criteria and who feel
unfairly denied rebate.
• Board will consist of seven members from agricultural community
• Board will not have jurisdiction to consider appeals regarding
assessment matters.
7. Farm owners claiming rebate must be Canadian citizens/permanent
residents.
8. Property tax credits and pensioner grants will continue for farmers,
calculated on total farm property tax bill, as in past. For example:
1984 Tax Bill $1,000 Farm Tax Rebate
Pensioner Grant ,$ 500 (6007o of $500) $ 300,
$ 500 Net Tax Bill $ 200
9. Rebates received by owner will continue to be recoverable if property
ceases to be assessed as farm.
10. Special provisions from earlier proposal to be implemented.
• Sales of products from farm woodlot included in gross production
• Program will be made permanent through Regulation approved by
Cabinet
• Property rights will be ensured through special section in the
Regulation. Section 2 reads:
2. Nothing in this Order shall be construed to impinge on the right of
a person to own farm property, nor shall payment of a rebate to an
eligible person provide the Government of Ontario with any
interest in or lien on the farm property of that person. ❑
11. All of the above changes are incorporated in a new regulation by
means of an order in council which will not require the annual
approval of cabinet.
VOICE, DECEMBER 1983