The price of land has tripled in the last three years. Now, with the new property assessment rolls, property taxes scare farmers.
According to Michel Hébert, President of the Syndicat de l’Union des producteurs agricoles du Haut-Saint-Laurent, farmers in the municipality of Franklin have seen their property taxes double between 2014 and 2015. “It’s worse for farmers inTrès-Saint-Sacrement, where taxes have tripled. We’re facing a reality that is unique in North America. The rate of taxation for farms is the same as it is for residential property.” explains the farmer.
A study conducted by the Institut de recherche en économie contemporaine in 2013 shows that agricultural producers every where else in North America have access to separate taxation rates or other accommodations when it comes to municipal taxes. Furthermore, Ontario producers pay 25% of the residential rate.
“We’re not here to criticize the assessment rolls, but you have to understand that we’re taxed on the tools of our trade, underlines Hébert. Instead of questioning the Programme de crédit de taxes foncières agricoles, the Union is requesting a review of agricultural property taxes so that the method for evaluating land and farm assets is based on their agronomic value while taking into account, among other things, intergenerational sales; that the method of taxation does not place a disproportionate tax burden on agricultural land and that a separate rate of taxation be applied to agricultural assets.”
In Quebec, land value for taxation purposes is established based on transactions over the last three years. Intergenerational sales, which account for the majority of land transfers, are not taken into account. According to producers, they are much closer to the true and agronomic value of the land.
Programme de credit de taxes foncières agricoles (Credit program for agricultural property taxes)
Two years ago, in order to benefit from the Programme de crédit de taxes foncières agricoles (PCTFA), farmers had to have a minimum average gross income of $8 per $100 of property assessment. In 2015, the minimum level of income required to benefit from this tax reimbursement program was lowered to $5 per $100 of property assessment.
In an interview for the Journal Coup d’œil in January 2015, the President of the Fédération de l’Union des producteurs agricoles de la Montérégie, Christian St-Jacques, confirmed that there had been a significant rise in the value of land.
“This situation touches 700 to 750 farms in Quebec, of which 200 to 300 are in the Montérégie region. Land values are too high in relation to gross farm income. This program allows eligible farmers to be reimbursed for around 70% of their agricultural property tax. It is not unusual these days for a farmer to have to pay 25, 30 or even $50,000 in taxes”, explained Christian St-Jacques.
Translated by Cathleen Johnston
