Council is set to consider adjusting the farm tax ratio in the Municipality of Chatham-Kent.
Wallaceburg Councillor Carmen McGregor entered a successful motion at the Monday, August 12, 2024 Council meeting, which directed staff to bring a report to Council in the fall, with a recommendation to phase in the farm tax ratio “back to the normal province wide rate of 25%” of the residential rate.
Councillor McGregor’s motion also directed that an equivalent amount of the taxation shift be invested in the asset management plan for rural infrastructure in 2025 and 2026.
McGregor’s motion also requests that the report will provide information on farm tax ratios in the highest 10 farm assessment regions of Ontario and also directs staff to create an engagement strategy for the agricultural community and circulate the report to Kent Federation of Agriculture and Christian Farmers Association in advance of the council meeting.​
“Chatham-Kent has the best farmland in Canada and agriculture is our backbone,” Councillor McGregor said in her motion.
“The 2024 taxes are still allocated based on 2016 assessment values (and) the provincial government has paused reassessment with no firm timeline for return… financial challenges are equally prevalent in all classes of properties.”
McGregor added: “Farm property tax are a business expense the same as any other commercial or industrial business. The reduction of the farm tax ratios by councils 22 ago were primarily based on low commodity rates and rising farm assessments, resulting in all other businesses and residents of Chatham-Kent subsidizing the farm tax reduction, which was intended to be a temporary and not a permanent relief.”
In a note posted online with McGregor’s motion, staff says administration “continues to support an increase in the farm tax ratio from the current rate of 0.22.
“A farm tax ratio of 0.25 was established in 1998 before Council lowered the rate to 0.24 in 2003 and 0.22 in 2004 due to rising farm assessments and low commodity prices. This reduction was intended to provide temporary relief. Farm sale prices have continued to rise and commodity markets have recovered while the rate has remained at 0.22 for the last two decades,” the staff note says.
“There is no impact on the budget but the decision could result in a shift of the tax burden between property tax classes.”
The report is set to be before Council next month.
