Are you eligibel for the Farm Property Tax Class?

By Gary Sliworsky
OMAF/MRA Rep.

The Farm Property Class Tax Rate Program allows eligible properties to be taxed at the Farm Property Class tax rate of 25% of the municipal residential tax rate. The farm residence, and 1 acre (0.4 ha) of land surrounding it, will continue to be taxed as Residential Class.
A multi-year Farm Property Class Tax Rate Program application is used to determine the eligibility for the Farm Property Class tax rate for the current and subsequent years.
All property owners are responsible for informing the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) immediately of any changes related to the eligibility status of the property.
In order to be eligible for the Farm Property Class tax rate all of the following criteria must be satisfied:
1. The property must be assessed as farmland through the Property Assessment Division of the MunicipalProperty Assessment Corporation (MPAC).
2. The property must be used as part of a farming operation generating Gross Farm Income of at least $7,000 as reported to Canada Revenue Agency for income tax purposes.
3. A valid Farm Business Registration number is required for the farm business operating on the land. Under the Farm Registration and Farm Organizations Funding Act, a farm business generating Gross Farm Income of at least $7,000 as reported to Canada Revenue Agency for income tax purposes must register annually with AGRICORP. Continued eligibility for the Farm Property Class tax rate requires the yearly renewal of the Farm Business Registration number.
4. More than 50% of the property ownership must be held by Canadian citizens or Permanent Residents of Canada. If the property is owned by a business which is a sole proprietorship, the owner must be a Canadian citizen or Permanent Resident of Canada.
If the property is owned by a business which is a partnership, more than 50% of the profit or loss of the partnership must be allocated to the partners who are Canadian citizens or Permanent Residents of Canada.
If the property is owned by a business which is a corporation, more than 50% of the voting shares must be controlled by Canadian citizens or Permanent Residents of Canada.
If you have questions concerning the Farm Property Class, contact OMAF/MRA at 1-877-424-1300.
For all inquiries, please have your Owner ID number, name, address, property roll number and telephone number at hand.