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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. |
WHAT LAND IS ELIGIBLE UNDER THIS PROGRAM?
Qualification for eligibility under the Tax Exemption Program are:
- the land base must be used for the
production of agricultural products;
- the land must be farmed by the
individual applying for the exemption (in
the case of rented land, however, the
exemption will benefit the landlord);
- 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: $5,000.00 @ $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. |
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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NEW ENTRANTS AND FARMERS EXPANDING THEIR LAND
BASE
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 &
HOW TO APPLY |
Applications are reviewed by
Planning Staff in consultation with
Agricultural Representatives to verify land
ownership and level of production.
Applications must be submitted each year.
- Tax exemption
application forms may be obtained from:
Town Council Offices; local area
Agricultural Representatives; or by
contacting the Department of Natural
Resources, Land Resource Stewardship
Division, P.O. Box 2006, Fortis Building,
Corner Brook, Newfoundland and Labrador,
A2H 6J8.
- Applications must be
submitted annually. They shall be returned
by October 31st of the year prior to tax
year. Applications received after this
date may jeopardize the exemption for that
year.
- Farmers land base
information from previous applications is
kept on file. Applicants who have
previously applied under this program are
only required to indicate changes to their
land base (i.e. Section II and / or
Section IV: Only list properties which
have been added or deleted).
- Rental properties must
be identified and fully described on an
annual basis (Section III).
- The completion of
Section I and Section V is compulsory each
year. Applications received without this
information will be returned.
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Contact:
Barry Sweetland
Land Management Officer
Agrifoods Development
Mailing address:
P.O. Box 2006 Fortis Building
Corner Brook, NL Canada
A2H 6J8
Phone: 709-637-2563
Fax: 709-637-2586
e-mail:
bsweetla@gov.nl.ca
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