Ontario farm businesses are required to navigate through a number of unique tax situations. From selling crops or livestock to passing the farm down to the next generation, almost every decision made by farmers has some type of tax implication. Farmers pay taxes to all three levels of government (municipal, provincial and federal) and the tax policies that governments enact has implications for farmers. OFA continues to work with all three levels of government, to ensure the government tax policies recognizes the unique structures and needs of farm businesses. The following information will guide you through the major tax policies impacting Ontario farmers, and the changes that OFA continues to advocate for.
OFA continues to push for legislative changes that will improve the transparency of assessment and taxation of Ontario farm properties.
OFA’s standing policy proposes that property tax treatment of value-adding facilities should give special considerations to products grown in Ontario.
OFA recommends that if historically at least 51% of the product is grown and value-added by the same farmer(s) and at least 90% of the product is grown in Ontario, then the facilities should be subject to no more than 25% of the residential property tax rate.
More information about Taxation on the OFA website.