Genius!
Why didn’t I think of this?
Starting Monday morning – I’m going out and getting some bushels of corn, some bales of hay, and maybe even a few huge clumps of cow poop…
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4 Comments
Pick5 is a weekly series comparing and analyzing five residential properties based on price, style, location, and neighbourhood.
Phil
at 11:39 pm
I don’t think the rate he/she may pay is inappropriate, I think its an appropriate rate for the income it brings to the owner: extremely low compared with a land that contains a warehouse or factory. shop, etc… It may barely cover the expenses, who knows.
Question though, if the land was completely unused, and the only thing it would contain would be compacted dirt, would the taxes be higher or lower?
myeo
at 10:45 am
In order to become eligible for the farm class the owner needs to report over $7,000 per year as farm income to Revenue Canada and the Ministry of Agriculture and Food must agree that you are indeed a farm. Once you jump through those “hoops”, only then will MPAC allow you into the FT – Farm class to receive 25% of the residential tax rate.
Alternatively, if you owned land with a forest or woodlot, you can apply to have the land registered as a Managed Forest and also receive at tax rate of 25% of the residential rate. The Managed Forest class is more difficult and costly to obtain (I believe it costs at least a few thousand dollars to be certified and you cannot cut down any trees).
myeo
at 11:06 am
In Central Huron (a small municipality that I grew up in) the tax rate for Farmland is 0.35% and land is assessed at about $6,000 per acres (despite being worth $10,000 per acre – MPAC is being nice!). On an assessed value of about $480,000, an 80 acre plot of land will have a final tax bill of about $1,600-$1,700. Contrast the same assessment with a $480,000 condo in Toronto or a $480,000 industrial condo with an industrial tax rate and your taxes will be about $3,600 and $15,000 respectively.
There is a huge benefit to being taxed as a farmer, but you really need to be one, or at the very least rent the land to an actual farmer.
Paully
at 8:25 am
The agricultural rate is 25% of the regular rate.