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Farm tax credits

Post-11-920x300Many farm owners are aware that the Farm Property Class Taxation Program replaced the farm Tax Rebate Program in 1998, but if you’re looking to purchase a farm in the future then you may not be aware of the differences.

Under this new farm taxation policy, eligible farm properties will be taxed at 25 per cent of the municipal resident tax rate while the farm’s residence and one acre of land surrounding the residence will be taxed at the Residential class rate.

The eligibility requirement for the Farm Property class tax rate remain the same as those previously applied to the Farm Tax Rebate Program and all property owners will continue to be responsible for informing the Ontario Ministry of Agriculture, Food and Rural Affairs of any changes related to the eligibility of the property.

If you own a farm or are thinking about purchasing one, please be advised that the property must meet all of the following criteria:

  • The Municipal Property Assessment Corporation must assess the property as farmland.
  • The Gross Farm Income generated by the property must be at least $7,000, or qualify for a Gross Farm Income Exemption.
  • The property must be more than 50 per cent owned by either Canadian citizens or Permanent Residents of Canada. For properties that are owned by businesses, the owner of a sole proprietorship must be a Canadian citizen or Permanent Resident of Canada, more than 50 per cent of the profit or loss of a partnership must be allocated to partners who are Canadian citizens or Permanent Residents of Canada and 50 per cent of the voting shares of a corporation must be controlled by Canadian citizens or Permanent Residents of Canada.

If you require more information about farm tax credits or are interested in purchasing a farm property, I would be happy to assist you. Please call me at 416-925-9191 or e-mail Roxanne@ChestnutPark.com.


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