The Rural Voice, 1997-10, Page 60HCFA OFFICE HOURS
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1 p.m. to 4 p.m.
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(519) 482-964211-800-511-1135
FAX (519) 482-1416
HURON
County Federation of Agriculture NEWSLETTER
Box 429, Clirfton, Ontario NOM 1L0
519-482-9642 or 1-800-511-1135
' The Rural Voice is provided to all farmers
in Huron County by the HCFA.
Tax reform related to farmland
As indicated in the January
announcement on Who Does What tax
reform, the Farm Tax Rebate Program
will be eliminated after the 1997 tax
year. A new taxation policy for eligible
farmland will be implemented based on
25 per cent of the municipal residential
tax rate on eligible farmland and
outbuildings. The farm residence and
one acre of farmland, when occupied by
the farmer, will be taxed on the
prevailing municipal residential tax rate.
The current Farm Tax Rebate
Program was created in 1970 as an
interim solution to ease the unfair tax
burden on farm property in Ontario until
property tax reform could be
implemented. In response to
recommendations from farmers, the
government has now legislated a
specific tax ratio on eligible farmland
and ended the cumbersome farm tax
rebate process. The Fair Municipal
Finance Act establishes a separate
property class for eligible farmland and
eligible managed forests, to which a tax
rate that is 25 per cent of the municipal
residential tax rate will apply.
Qualifications for the new farmland
and outbuildings class will be consistent
with current qualifications for the Farm
Tax Rebate Program, and will be
defined in regulations. It must be noted
that the existing method of assessing
farms remains the same. Eligible
managed forests will be included in the
new "farm" class, taxed at the same rate,
and assessed in the same way as farms.
Eligible conservation lands will be
exempt from property tax.
The application process for this
reduced tax rate in 1998 will be
concurrent with the Farm Tax Rebate
Program. Landowners will still be
required to obtain a Farm Business
Registration number to remain eligible.
Land tenants will still be required to
provide the landowner with their Farm
Business Registration number so that
the landowner can apply for the reduced
tax rate.
Properties will be classified as of
October 31 each year for assessment and
taxation for the following tax year.
Properties that have a change in
property status (i.e. lose eligibility for
either assessment at farm productivity
rates or the reduced tax rate [25 per
56 THE RURAL VOICE
cent] during the taxation year) can be
reassessed using the supplementary
assessment provisions. Changes in
assessment value due to a change in
ownership will be handled by the
supplementary assessment provisions
administered by the Ministry of Finance.
The Ministry of Finance, Property
Assessment Division will classify value-
added activities on farm property on an
individual basis. These value-added
activities that are determined to be an
extension of the farm operation will be
assessed using farmland rates, but will
be taxed at the appropriate tax rate (i.e.
commercial, etc.) In July 1997,
OMAFRA, the Ministry of Municipal
Affairs and Housing and the Ministry of
Finance met with farm groups to discuss
specific value-added scenarios and their
potential tax implications. OMAFRA
will continue to work with these
stakeholders through the Farm Tax
Working Group to ensure fair and
equitable tax treatment of value-added
activities on Ontario farms. Treatment
HCFA DIRECTORS'
MEETINGS
Fourth Monday of the Month
8:00 p.m. at Vanastra
Members Welcome!
of value-added activities will be drafted
in regulations under the Municipal
Finance Act in the fall of 1997.
Properties which currently qualify
under the Farm Tax Rebate Program
would be eligible for the reduced tax
rate of 25 per cent. The new farmlands
class regulation sets out the following
eligibility criteria which are the same
governing principles as the former Farm
Tax Rebate Program: — must have a
valid Farm Business Registration
number OR must have been granted an
exemption for religious belief under the
Farm Organizations and Farm
Organization Funding (FBR) act, 1993
OR fall under the retired farmer criteria
(age, illness or death of spouse) because
the gross annual income was less than
prescribed under the FBR Act OR does
not meet gross annual income due to
low production (i.e. crop disaster, start
up operation with longer lead time
required).0
HURON COUNTY FEDERATION
OF AGRICULTURE
ANNUAL/REGIONAL
MEETING
Friday, October 24, 1997
Seaforth Community Centre
Speaker: Dr. Gord Surgeoner,
Topic: B10 -Tech - Friend or foe to
Ontario Farmers??
Tickets: $ 12.00 available from
County Directors or county office
Dinner at 7:00 p.m.
(at this time Convention Delegates
will be elected for the OFA
Nov. 24, 25, 26 Convention)
NOMINATION FOR ANNUAL HURON COUNTY AWARD
I would like to nominate for the Annual
Huron County Award for outstanding contribution in the field of Agriculture and to the
community in the County of Huron as well as provincially because
Signed
This award will be presented at the Annual Banquet on Friday, October 24, 1997