PUSLINCH – The Township of Puslinch have endorsed supporting a resolution from Mapleton calling for a provincial review of the Farm Property Tax Class Rate Program.
Mapleton passed the resolution in March because of concerns about growing economic competitiveness between urban and rural municipalities.
Before 1998, farmers would pay full taxes to municipalities and then apply for a provincial rebate of 75 per cent. Farmers now pay property tax on 25 per cent of their assessed land. This means the burden of subsidizing farms falls on other residents and businesses in host municipalities.
Some provincial funds have been allocated to rural municipalities through the Ontario Municipal Partnership Fund to offset this tax loss. However, a report from county treasurer Ken DeHart said that these funds have declined over the years.
At Mapleton’s previous council meeting it was noted that they should seek support from other county municipalities and this resolution was sent to the other towns.
Matthew Bulmer, councillor and farmer, said to council that this issue has been a challenge for rural municipalities for a long time.
He explained it was tough for him to be seen as a valued part of the community paying a lot in property taxes to the town to suddenly feeling like a liability because he was only paying 25 per cent.
“It’s the same thing everyone is trying to achieve which is rebalancing this and getting it right so that rural residents, my neighbours, aren’t subsidizing my living,” Bulmer said.
Mayor James Seeley said the ask is for food production to be subsidized from every tax payer in the province.
“I’m supportive of farmers paying less tax for food production if every Ontarian contributes to support that initiative,” Seeley said. “I do believe the urban residents of Ontario, in Toronto and those major centres, they should be subsidizing food production in Ontario.”
The town is dealing with a similar problem regarding the aggregate industry. Seeley explained that the province has identified that the aggregate industry needs to be subsidized with low land assessments.
“We’re fighting them on that, we’re saying ‘If you want to subsidize the aggregate industry then the province should do that,” Seeley said. “They should pay their fair share of tax to the municipality and the province can kick back that money.”
The resolution was supported although Bulmer had his doubts that the province would adopt it.
“I would like to talk with staff and councillors about an alternative solution to this that might address the concerns of the Wellington Federation of Agriculture, the Ontario Federation of Agriculture and municipalities,” Bulmer said.
