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Farm Tax Ratio Consultation

Notice of Motion

At the July 15, 2024 Council Meeting Councilor Carmen McGregor presented a notice of motion regarding Farm Tax Ratio. The following motion was presented and approved as amended at the August 12, 2024 Council Meeting:

"That administration bring a report to Council in the fall of 2024 with a recommendation to phase in over the remainder of this term of Council the farm tax ratio back to the normal province wide rate of 25% of the residential rate, as described in Section 308.1(3) of the Municipal Act, 2001.

And further that an equivalent amount of the taxation shift be invested in the Asset Management Plan for rural infrastructure in 2025 and 2026. The report will provide information on farm tax ratios in the highest 10 farm assessment regions of Ontario. Administration is directed to create an engagement strategy for the agricultural community and circulate the report to KFA and Christian Farmers Association in advance of the council meeting.”

Current Tax Ratio

Currently the Farm Tax Class ratio is 22% of the residential tax rate in Chatham-Kent. The rate was 25% as established in 1998 before Council lowered the rate to 24% in 2003 and to 22% in 2004 due to the rise in farm assessments and the low commodity prices at the time. The intent at the time was for this to be a temporary reduction. Farm sale prices continued to rise over the next decade and commodity markets recovered while Council continued with the rate at 22%.

Previous Discussions

The 2021 Budget Opportunities for 0% Report was received by Council on August 10, 2020. Council approved further analysis of proposed items related to service delivery to efficiently provide quality core services to Chatham-Kent residents and achieve a 2021 budget target of 0%. The report recommended that detailed reports be brought back to Council for final approval prior to the 2021 budget deliberations. Subsequently, a report with respect to the Farm Tax ratio was brought to the October 5, 2020 Council Meeting, which was then deferred to the March 22, 2021 Council Meeting, where the recommendations of administration were not accepted and the following motion was approved:

“That the Farm Tax Ratio be postponed until MPAC representatives can present up to date re-assessment information prior to Council decision making. And that a fulsome community consultation take place with the community of Chatham-Kent.”

Assessment Update

To date, reassessment data has not been provided to municipalities and neither MPAC or the Province have committed to a timeline for implementing the updated assessment roll. The Province announced in 2023 that it was going to conduct a review of the property taxation and assessment system focusing on fairness, equity and economic competitiveness.

At this point it is unlikely to have an updated assessment roll before January 1, 2026. Assessment information was last updated with a January 1, 2016 valuation date.

Notice of Motion

At the July 15, 2024 Council Meeting Councilor Carmen McGregor presented a notice of motion regarding Farm Tax Ratio. The following motion was presented and approved as amended at the August 12, 2024 Council Meeting:

"That administration bring a report to Council in the fall of 2024 with a recommendation to phase in over the remainder of this term of Council the farm tax ratio back to the normal province wide rate of 25% of the residential rate, as described in Section 308.1(3) of the Municipal Act, 2001.

And further that an equivalent amount of the taxation shift be invested in the Asset Management Plan for rural infrastructure in 2025 and 2026. The report will provide information on farm tax ratios in the highest 10 farm assessment regions of Ontario. Administration is directed to create an engagement strategy for the agricultural community and circulate the report to KFA and Christian Farmers Association in advance of the council meeting.”

Current Tax Ratio

Currently the Farm Tax Class ratio is 22% of the residential tax rate in Chatham-Kent. The rate was 25% as established in 1998 before Council lowered the rate to 24% in 2003 and to 22% in 2004 due to the rise in farm assessments and the low commodity prices at the time. The intent at the time was for this to be a temporary reduction. Farm sale prices continued to rise over the next decade and commodity markets recovered while Council continued with the rate at 22%.

Previous Discussions

The 2021 Budget Opportunities for 0% Report was received by Council on August 10, 2020. Council approved further analysis of proposed items related to service delivery to efficiently provide quality core services to Chatham-Kent residents and achieve a 2021 budget target of 0%. The report recommended that detailed reports be brought back to Council for final approval prior to the 2021 budget deliberations. Subsequently, a report with respect to the Farm Tax ratio was brought to the October 5, 2020 Council Meeting, which was then deferred to the March 22, 2021 Council Meeting, where the recommendations of administration were not accepted and the following motion was approved:

“That the Farm Tax Ratio be postponed until MPAC representatives can present up to date re-assessment information prior to Council decision making. And that a fulsome community consultation take place with the community of Chatham-Kent.”

Assessment Update

To date, reassessment data has not been provided to municipalities and neither MPAC or the Province have committed to a timeline for implementing the updated assessment roll. The Province announced in 2023 that it was going to conduct a review of the property taxation and assessment system focusing on fairness, equity and economic competitiveness.

At this point it is unlikely to have an updated assessment roll before January 1, 2026. Assessment information was last updated with a January 1, 2016 valuation date.

Page last updated: 15 Nov 2024, 04:30 PM