Thursday, February 8, 2018

MPAC DUSTING OFF RULE BOOK IN ONTARIO

   Farmers might notice the cost of renting land going up more than they expected this year.  That’s because   of a more-than two-decade-old rule that MPAC has recently dusted off.
   The rule only affects farmers renting land from non-farmers. When a non-farmer rents out farmland with bush or woodlot on it, the acreage with bush or woodlot on it is zoned residential and doesn’t qualify for the farmland tax exemption.
   Since the farmland exemption caps the farmland tax rate at 25 per cent of the residential tax rate, the property tax bill for that marginal land quadruples. For the vast majority of municipalities in Ontario, the rate is 25 per cent.


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