Farm Property Class Tax Rate Program - Questions & Answers
How do I apply for the Farm Property Class Tax Rate Program?
The Municipal Property Assessment Corporation (MPAC) informs the ministry of all changes in property ownership. If you are a new owner of property assessed as farmland, a Farm Property Class Tax Rate Program application will be sent directly to you and must be returned by the due date specified on the application.
If your property is assessed as farmland and you have not received an application within 90 days after your purchase, you should contact the ministry at 1-877-424-1300. If your property is not assessed as farmland, you should consider contacting MPAC.
Applications are also sent to those who have reported a change to their farming operation. If you have a change in your farming operation, you can contact the ministry at 1-877-424-1300.
What if I don't meet the income eligibility requirements?
If your gross farming income was below $7,000, you may still be considered for Farm Property Class Tax Rate, if you are approved for a farming business income exemption. For further information on the types of income exemptions available and how to apply, refer to Farming Business Income Exemptions.
What is considered farming income?
Farming income is defined by the Canada Revenue Agency (CRA). Contact CRA to determine if your farming activity fits within the CRA Income Tax Act farming income definition.
What if I missed the due date for submitting my application?
Failure to return your Farm Property Class application by the due date listed on the application may result in your farm property being taxed at the full residential tax rate. If you have missed your application due date, contact the ministry immediately at 1-877-424-1300.
I have purchased a new property. How will it be taxed?
For properties assessed as farmland by the Municipal Property Assessment Corporation (MPAC), the default tax rate is residential. A new property owner must complete and return a Farm Property Class Tax Rate application to show that all of the program eligibility criteria have been satisfied, prior to the upcoming tax year.
If the property transferred is currently at the Farm Property Class Tax Rate, MPAC will normally allow the property to remain in the farm property class for the remainder of the given tax year.
I have purchased property that is not currently assessed as farmland. How do I get it assessed as farmland?
Contact MPAC to confirm the assessment and tax rate for the property prior to the purchase or to have the property assessed.
I have purchased property that is not currently in the Farm Property Class. Can I receive the farm property class tax rate?
A new property owner who meets all the program eligibility criteria may apply for the farm property class tax rate for the remainder of the current property tax year and for the next property tax year.
Contact the ministry at 1-877-424-1300 to request a Farm Property Tax Class Rate Program application.
Can I apply to the program if l rent my land to a tenant?
Yes. The land owner must be the applicant to the Farm Property Class Tax Rate Program.
If my tenant farmer has not paid her/his farm business registration fee, what will happen to my Farm Property Class taxation status?
The property owner is responsible for ensuring that the tenant has a valid Farm Business Registration Number. If the tenant farmer does not pay the fee, then the property is not eligible for the Farm Property Class.
What if I can't get the tenant farmer to sign my application?
The signature is used to verify that the property is being farmed. Applications without a tenant signature will be returned to the property owner and deemed ineligible.
Who should I contact if I disagree with the assessed value or property class listed on my Property Assessment Notice?
MPAC prepares all Property Assessment Notices. You must contact MPAC. You may also be required to file a Request for Reconsideration with the ministry before the deadline printed on your Property Assessment Notice.
How do I know if my property has been assessed as farm or if I'm already receiving the Property Tax Class Rate?
Check your Property Assessment Notice or contact MPAC directly. If your property is taxed at the Farm Property Class Tax Rate, the property classification should be "Farm".
I have received my Property Assessment Notice. I disagree with the property classification as 'residential' and think it should say 'farm'. What should I do?
If there appears to be a problem with the tax class and the property is not in the Farm Property Class, you may contact the ministry at 1-877-424-1300. You may also be required to file a Request for Reconsideration with the ministry by the deadline printed on your Property Assessment Notice.
How do I file an appeal?
You must file a Request for Reconsideration before the deadline printed on your Property Assessment Notice. Filing a Request for Reconsideration is a mandatory step prior to filing an appeal. If your Request for Reconsideration is declined, you will be provided with a decision in writing and may then file an appeal with the Assessment Review Board within 90 days of the decision date.
Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
For more information:
Toll Free: 1-877-424-1300