Councillors here agree with their counterparts from the Township of Burpee and Mills the way farm tax rebates are done should not penalize municipalities.
The Manitoulin Island municipality is concerned over the loss of municipal funding as a result of rebate programs.
It wrote, “According to recent information provided by the Rural Ontario Municipal Association, downloading of the farm tax rebate and the managed forest tax incentive program to the municipalities currently costs the rural taxpayers of Ontario more than $200-million a year.”
The farmland and managed forest rebate was administered and paid by Ontario to landowners downloading in 1999. It is now run by municipalities, through reduced tax rates.
Compensation for that loss of municipal revenue was provided by the province. Ontario saved administration costs created by the rebates when that administration was downloaded. However, when the community reinvestment fund was replaced by the Ontario Municipal Partnership Fund (OMPF), farmland and managed forest tax rebates were no longer directly funded by the province. There is very little or no funding for rural municipalities. Townships making the appeal stated a lack of funding for the programs is putting a burden on rural taxpayers.
Owners of farmland, managed forest, and conservation lands are forced to subsidize their own rebates. Those programs must be funded 100% by the provincial government say the municipalities.
The OMPF. funding does not compensate for the tax revenue lost by reduced tax rates.
Since the province no longer feels obligated to provide direct funding, rural municipal taxpayers cover the shortfall.
The townships stated that the programs exist for the benefit of all people in Ontario by reducing food costs and securing the environmental benefits obtained through the management of forest and conservation lands.
Burpee and Mills Township council believes those costs should not be a burden only for the rural landowners of the province when the benefits accrue mainly to urban residents.
It believes the tax rebate program funding needs to be provided by the province, thereby distributing the cost to all residents of Ontario, and not just be subsidized by rural landowners.
Minto Deputy-Mayor Judy Dirksen said that in the past the province directly provided the 75% rebate to farm property owners. Now, those properties are instead only being taxed at 25%.
“It’s great for the farmers [who do not have to make application for rebates].”
However, the current approach means rural municipalities lose that revenue and must pick up the difference from the rest of the tax base.
Mayor David Anderson added that it is an issue affecting a lot of rural community.
“Our expenses are the same, but we are working with less.”
