County council to take another look at dropping farm tax ratio

John Thompson, president of the Prince Edward Federation of Agriculture asked the committee of the whole on Thursday to reconsider reducing the farm tax ratio from to 20% from the current 25%. NICOLE KLEINSTEUBER/INQUINTE.CA

County council to take another look at dropping farm tax ratio

  • November 16, 2017 - 6:54 PM
  • Nicole Kleinsteuber
  • News, Quinte

Editor's note: An incorrect figure related to the number of farm field entrances needing signage has been removed from this story.

Local farmers continue to feel the frustration caused by significantly high farmland taxes and are again calling on the municipality for a break.

Last year MPAC assessments saw farmland taxable values in Prince Edward County increase by an average of 112 per cent compared to 65 per cent provincially over a four year period from 2016 to 2020.  This brought groups of local farmers to Shire Hall lobbying council to consider a reduction in the farm tax ratio to 20 per cent in 2017 and 20 per cent in 2018 from the current 25 per cent.   Many stated that they wouldn’t be able to sustain small farms with the impending increases.  This tax ratio reduction plan called for a 0.4 per cent increase to be shifted onto residential ratepayers.  In January, council turned down the plan stating they couldn’t shift the burden and put residential tax payers on the hook for 0.4 per cent.  The farmers stated they would come back to council ahead of 2018 budget deliberations.

John Thompson, president of the Prince Edward Federation of Agriculture returned to the committee of the whole Thursday requesting again that the default rate be reduced to 20% going forward.  He said many Ontario farmers were shocked to see their assessments go up so dramatically.

“The farmers of Prince Edward County were much more affected than most, as our average assessments were up 112 per cent,” said Thompson.  “These increases have not resulted in a lowering of the tax rate as the farm tax class made up just 1.6 per cent of County tax revenue in 2016.”

He said in order to keep the farm portion as the same 1.5 per cent to 1.6 per cent of County revenue, the farm tax ratio would need to reduce to 20 per cent, 17 per cent, 14 per cent and then 13 per cent over four years.

Thompson added while MPAC is responsible for farmland assessments, the farm tax ratio is the responsibility of each municipality.  

“As this ratio is capped but flexible, MPAC is not responsible for the tax increases which farmers have begun to experience,” he explained.

“County residents highly value a local and domestic food supply as well as the enjoyment of our rural fabric and landscape,” said Thompson.  “With agriculture being the back-bone of the County culture and economy, we should do everything possible to protect the family farms in the County.  Implementing these tax ratio recommendations would be a positive action for the retention and growth of agriculture and associated businesses.”

Pointing to the two most widely held principals of property tax fairness, he said it comes down to the ability to pay and the benefits.  He said the ability to pay principal ‘does not justify major tax increases since farm commodity prices continue to float in the range of the early 1970's’ and ‘the commodity boom that peaked in 2012 seems like a distant memory.’

“Farmers are price takers in the market, not price setters,” he said.  “The sharp increase in farmland assessments and resulting tax increases mean that farmers are paying substantially higher taxes while continuing to consume the same level of services.”

Mayor Robert Quaiff who has been in conversations with a senior policy advisor with the Ministry of Agriculture pointed to the recently proposed tax reforms for farmers as being a possible solution.

Like many farmers, Mayor Quaiff said he wants more information about the proposal.

As chair of the Eastern Wardens’ Caucus he said none of the other municipalities are recommending a lowering of the tax ratio.

“90 per cent of our taxes (in the County) come from residential,” he said ”When you consider we have the second highest population of senior citizens, you have to be very careful with how we handle any sort of an increase on taxes let alone decreases.”

The committee voted to have a staff look into the matter and have another report prepared for 2018 budget discussions.

FARM 911, The Emily Project

The ‘FARM 911, The Emily Project’ committee is also seeking municipal support in ensuring 911 signs are on all farm properties in the County.

Officially launched in August at the Hastings County Plowing Match, the initiative is aimed at getting emergency number signage for farm fields province-wide.

The campaign was spearheaded by local dad Scott Trudeau of Tweed following the death of his 7-year-old daughter Emily during a tragic farming accident in 2014.

Committee member Resi Walt and her team have been travelling from county to county for the past year, hammering home that 'no one should have to watch helplessly as an ambulance drives by.'

In an emotional video shown to the committee of the whole, Scott Trudeau relived the day of the accident when the EMS drove by and had to be flagged down by Emily’s mom.  

The heartbreaking story reenforcing how time is crucial in an accident and 911 signs ensure proper response times.

Belleville Fire Chief Mark McDonald also in the video echoed how first responders require an address even if there isn’t a building on the property to be able to respond to the scene of an emergency.

The committee promotes having a location that is GIS entered and physically matched with a sign in the ground alleviates the possibility of untimely error.  

Walt said they will be developing mechanisms to help farmers remember, like printing signs for the back of tractor cabs.

CAO James Hepburn stated helping to fund signs is a budget item for consideration included in the 2018 presentations in December.

Anyone can request 911 signs from Shire Hall at 332 Main Street or by calling (613) 476-2148.

Read More: Today's News, News, Quinte


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