County backs proposal that would save $8.2-million in tax capping

County coun­cillors learned on June 25 some property classes are benefitting by tax capping to the tune of $8.2-million - while other landowners in Wellington are mak­ing up that loss.

The issue stems from the ab­olition of the Farm Tax Re­bate program in 1998, where Ontario municipalities were forced to allow a 75% reduc­tion in property taxes for all farm properties.

Treasurer Craig Dyer also said in his report that in addi­tion, un­der the Conservation Land Tax Incentive program, property that meets the criteria to be con­sidered conservation land is returned on the assess­ment roll as exempt from taxes.

“In total, these three pro­grams represent a loss of mil­lions of dollars in tax revenue that are funded by other prop­erty owners within the municipality,” Dyer’s report stated.

He added the provincial government originally compen­sated municipalities for that prop­erty tax loss through the Community Reinvestment Fund, which has now been re­placed with the Ontario Muni­cipal Partnership Fund.

But, he added, “While the OMPF provides some support, the fact remains that the prop­erty taxpayers ultimately fund the cost of these provincial programs.”

Dyer showed there are 668 rural single family dwell­ings with an exempt current value assessment of $76.35-million; another 721 farmlands and mixed use properties with an exemption of $27.19-million in assessment, and 134 vacant residential lands with an exempt as­sessment of $13.29-million.

As well, The Grand River Conservation Authority has 74 properties that are exempt to the tune of $14.42-million, and 26 primary commercial and industrial properties are exempt to a value of $2.36-million.

The total amount of reduced property assessments is $133.63-million, and Dyer noted another 720 properties will qualify in the future, for another $55.25-million in lost assessment.

That brings the total to $188.88-million in lost tax as­sessment, worth $8.2-million in property taxes to Wellington County - and made up by other property owners.

Dyer noted the county is still waiting for some informa­tion from the Muni­cipal Prop­erty Assessment Corpora­tion (MPAC), and he will pro­vide a further report in Sep­tember.

Councillor Rod Finnie said the issue is becoming a serious one. “We are losing $8-million in taxes at the upper level,” he said. “The burden is being placed on other taxpayers.”

Finnie noted that credits from the province are declin­ing, and, “Other taxpayers must take up the slack - and I think it’s wrong.”

Wellington is not the only upper tier municipality to feel that pinch. Council supported a resolution by Oxford County council that asked the province provide upper tier munici­palities “the authorization to effectively eliminate capping in any or all of the protected prop­erty classes as they may de­termine.”

That resolution was sup­port­ed, and Oxford asked that it be sent to provincial Finance Minister Dwight Duncan.