Whereas farmland plays a vital role in supporting local food production, promoting agricultural sustainability, and preserving green spaces within municipalities; And whereas farmland located within municipal boundaries faces unique challenges and pressures, such as increased property values, limited space, and proximity to urban development, which can hinder its viability and continuity as productive agricultural land; And whereas equitable tax treatment of farmland, regardless of its location within a municipality, would promote fairness among farmers and reduce barriers to agricultural activity within urbanized areas: Therefore be it resolved that UBCM requests the Province extend the tax exemptions and assessed value methodology provided to rural area farms to farms located within municipal boundaries.
Ministry of Finance Government is committed to supporting the contributions of the agriculture industry to sustainability and food security. The legislative requirements for properties to qualify for farm class apply equally across the province. There are no differences in these requirements within and outside of municipal boundaries. Property tax relief is provided by regulating farmland values that are much lower than market. To qualify for farm class, a minimum annual gross income threshold of 2,500 must be met which applies to any rural or urban property of 0.8 hectares 2 acres or larger. Smaller lots must meet a higher income threshold of 10,000. Farm building barns, equipment storage and production facilities assessments are also reduced by up to 87.5 per cent. The tax rates applied to farmlands are set by the taxing jurisdictions: municipalities have the discretion to set lower or higher rates as deemed necessary. The tax rate for farm class in rural areas is set by the province. Farmers residences are taxed at the residential tax rates. The Ministry of Finance confers regularly with the Ministry of Agriculture and Food to consider farm assessments and taxation and notes that urban farm operations are an important component of the farming industry and will be reviewed in any future discussions.