Making sense of your property tax bill

Gary Sliworsky
Ag. Rept.

Have you ever had trouble making sense of your farm property tax bill? Paying property tax is something we do each year. Understanding your tax bill may be another matter and can bring about many different questions. Knowing there are three distinct parts to the property tax system can help in answering your questions.
1. Property Assessment Valuation
Assessment values are intended to reflect a property’s value and its use. The land and farm buildings may be eligible for the farm property tax rate, which is normally set at 25 percent of the residential rate. The farm residence and one acre of land surrounding is normally taxed as part of the residential class. To test your assessment, ask yourself if you could have sold your property on January 1 of the given year for its assessed value.
Farmland values are based on farmer to farmer sales, as opposed to, for example, a farmer to developer sale. Farmland valuation considers a land class system. The higher the land class the higher the value and agricultural capability (i.e. class 1 agricultural land vs class 4).
The Municipal Property Assessment Corporation (MPAC) classifies and assesses all properties in Ontario. If you are concerned about your assessment or changes to your assessment contact MPAC at 1-866-296-6722.
2. Property Class
If your assessment notice from MPAC reads ‘Farm Taxable’, this indicates the property is eligible for the farm property class and associated tax rate; ‘Residential Taxable’ indicates the property is for the residential property class and associated tax rate. Other categories include: commercial, industrial, managed forest etc.
For a property to be included in the Farm Property Class Tax Program, i.e. ‘Farm Taxable’ category, it must be used as part of a farming operation and have a Farm Business Registration (FBR) number linked to it. According to the Farm Registration and Farm Organizations Act, a valid farm business must gross at least $7,000 in reported income. Farm Business Registration numbers are issued by AgriCorp. If you or the farmer renting, leasing or using your property requires an FBR number, contact AgriCorp at 1-866-327-3678.

Dates to Remember
·As of Wednesday, November 30, 2005 the Emo Agricultural Research Station will be closed for the season.
·Dec. 7 – RR Soil & Crop Annual Meeting