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The Real Property Tax Exemption Program for Agricultural Land is designed
to identify productive farm land and farm buildings used in connection
with farm production that may be eligible for exemption from real property
tax in accordance with the Municipalities Act. It
may apply to individuals who are productively using agricultural land, whether it is owned, leased or
rented.
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Program Objectives
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Encourage owners of idle land to put it into farm production.
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Provides some tax relief to farmers who have high assessments due to
the relatively large amount of land that they require to operate effectively.
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FAQ's
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How does this program operate?
The amount of land that may be eligible for exemption is based on the
gross sales of agricultural products. In general, the higher the level
of production, the more acres may be exempt.
The exemption program is based on several assumptions. A significant
portion of an individual's land may consist of rock, bog, steep slopes,
etc., and would not be capable of agricultural production. Furthermore,
because productivity varies greatly from one type of enterprise to
another, the exemption formula is calculated using a low value, based
on extensive agricultural use.
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What land is eligible under this program?
Qualification for eligibility under the Tax Exemption Program are:
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The land base must be used for the production of agricultural products
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The land must be farmed by the individual applying for exemption
(in the case of rented land, however, the exemption will benefit the landlord)
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The applicant must produce a minimum of $5,000.00 in annual gross sales from
agricultural products in the year prior to the exemption year. The exemption
does not include residences or 0.5 acres of land on which residences are located.
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Applicants who qualify will be eligible for exemption on one acre per $250.00 of gross
sales beyond the $5,000.00 level. For example, if a farm has gross sales of $5,000.00,
he would be eligible for exemption on 20 acres (ie: $5,000 @ $250 per acre = 20 acres).
Similarly, a farm with gross sales of $50,000.00 would be eligible for exemption on 200
acres.
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It is also appreciated that a farmer may, from time to time, have a poor year due to
adverse climate, poor markets, etc. As a result, the program incorporates an income
averaging system whereby a farmer may equalize the gross sales figure from a poor year
by averaging it with the two immediately preceding years.
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If a landowner does not qualify under the above conditions, but rents a
minimum of 5 acres to multiple patrons for agricultural purposes (eg. garden
plots, pasture), the rent received from the land may be used in place of
gross agricultural sales.
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Greenhouse operations are eligible for exemption provided the applicant
submits an affidavit declaring that his income is filed with Revenue
Canada Taxation as a farmer.
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Are new entrants and farmers expanding their land base eligible?
New entrants in agriculture and established farmers who have recently expanded
their land base may also qualify for special consideration. Upon approval, farmers
who are establishing or expanding may qualify for exemption on their total land base
regardless of their gross sales. This would be in effect for a maximum of five years
from the time the land was acquired.
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Application Review Process
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Applications are reviewed by Planning Staff in consultation with
Agricultural Representatives to verify land ownership and level
of production.
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Applications must be submitted each year. They shall be returned by
September 30th of the year prior to tax year. Applications received
after September 30th may jeopardize your exemption for that year.
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Land registration information from previous applications is kept on
file. Applicants who have previously applied under this program are
only required to indicate changes to this information (ie. only list
land which you are adding or deleting).
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