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Property Assessments for Ontario Horse Farms
Archived Update: Jan 23, 2005
There is a detailed summary on our website www.JLEquestrianCentre.com. I was trying not to use our website but it is the only way I can get information out there quickly! I will assume you will read it. Some will be information you may already know but other information is new.
Below are items discussed at ARE meeting in January 2005.
- Triggers:
- If You Own or Lease a Barn - and you offer boarding or lessons - you are at risk. This is probably the case if you give trail rides also. It doesn't matter if you have one boarder or one hundred - teach two lessons a week or two hundred - whether you have three acres or one thousand - your facility can be reassessed and all or part of the property and farm buildings will be changed to Commercial. New building permits will certainly cause a reassessment. Also, an assessor may just decide to drop in. We suggest you ask them to book an appointment and come back at a more convenient time. You may not have this option because some assessments are done even when you are not home! They may ask your clients for information or simply do it on their own. Regardless of how they get their information, assessors are making business and life changing decisions for barn owners.
We got the results of our Request for Reconsideration. It was a pleasant surprise. Still a lot of dollars but not near as bad as it was at first. That is how they get you to settle for this rediculous situation. You are finally somewhat relieved.
You must understand the difference between Property Assessment Valuations and tax rates that are then applied. For our purposes you can have:
| 'Property Assessment Valuation' |
'Tax Rate' that may apply |
| Farmland |
Farm |
| Farmland |
Residential |
| Rural |
Residential |
| Commercial |
Commercial |
Most properties are 'zoned' agricultural - that has nothing to do with this. It simply gives you the right to have a horse farm on the property - 'land use'.
Media attention - CBC TV Toronto, CBC radio, Timmins Daily, New Hamburg, Guelph Mercury, Wellington advertiser, Uxbridge, Milton Compass, and many more. Toronto Star is also doing a story. We need more. Let them know about this crisis!
Letter Writing Campaign is going very well. Keep it up.
Various web sites have picked it up - Can Am, U of Guelph, TB's, others - pass it on
Many newspapers contacted - you can also write letters to editors and pass on info.
Contact MPP's, and opposition critics - everyone.
Meeting took place with OFA an OMAF - everyone very cooperative.
Meeting is setup with Minister of Finance office - Wed, Jan. 26
There are panel discussions setup for Can Am March 19 and 20 in London.
If reassessed as commercial :
- Visit www.mpac.ca to review the appeal process. Request for Reconsideration and Notice of Complaint. Pay particular attention to deadlines. Everyone should appeal!!
- Contact the ARE MPAC Committee Chairs, Leslie Brooks & Jim Waechter at 519-696-3688 or email JLnet@Quixnet.net. We are continuing to document the impact across the province including the inconsistencies. We may be able to give you some tips. We have been through the process! You may also want to consult a Property Tax Advisor. We can recommend someone.
We believe, "horses are livestock. Livestock farming is an agricultural activity. This activity may include, but is not limited to, the breeding, raising, training, showing and maintenance of livestock." All horse maintenance should be considered farming for property assessment purposes. Current legislation for property valuation purposes, Section 19(5) of the Act, recognizes racehorse maintenance as farming. We believe it should be 'horse maintenance', regardless of what you are doing with the horses. We all have the same issues, similar expenses, and farm chores! We are not asking for changes to Reg 282/98. We are not trying to change what is defined as farm income for Revenue Canada purposes. We are not challenging what is used to qualify for the Farm Property Class Tax Rate. If we qualified before or not, we will still qualify or not. We are concerned with Property Assessment Valuations - we are farmlands not commercial. At least with income tax - we can make a profit before we pay tax. You pay property tax before you even have a $1 in profits!
We need legislative clarification and change. We are in the midst of discussions with various government ministries. Ultimately, it will be a decision made by the Minister of Finance, Greg Sorbara. The committee hopes that the cooperation continues and that the discussions are successful and legal action will not be necessary. This will be extremely costly. We have had contact with several lawyers who are keen to take on our case. We may need donations to help the cause. We will let you know or you can contact ARE. A fund has been started.
WHAT YOU CAN DO:
- Help us inform and educate everyone about this tax. Barn owners and all stakeholders need to be aware of what is happening and help fight the commercial taxation of horse farms. It is destroying our industry. The sport will become a sport for the wealthy. You can find a one page summary on the OEF site www.horse.on.ca. Please hand it out and post it everywhere - tack shops, barns, and feed stores, etc.
- We need to educate people that the majority of horse people are not wealthy - this is a misperception. I have heard this from several sources - that MPAC people and others have said that it is about time those rich horse people pay their dues. This is so far from the truth, it is almost funny! Why do I muck stalls? Why are the parents sacrificing so much just so little Sally can ride?
- To show the government that you care, go to www.horse.on.ca. Follow the link to MPAC - Tax Crisis - Letter Writing Campaign. Print the letters, sign and send. Give copies to your barn, friends, your parents - anyone who is over 18 and cares about the future of the equine industry. The letters are working! They create political pressure.
- Talk and write to your municipalities, your MPP's, opposition critics to the Ministers, newspapers, TV. You can direct them to the ARE Committee chairs or ARE for details and interviews. Please help get the media involved. This also creates political pressure. They need to understand how devastating this will be to you, the rural economy, the horse industry and everyone that rides or owns a horse, not just the barn owners and service providers. We have already had a lot of exposure - CBC TV Toronto, CBC radio and CKCO TV from Kitchener plus numerous newspapers but we need more.
- So many in our industry do not know this is happening and that you are concerned. Please pass information on.
- For updates, you can visit www.JLEquestrianCentre.com. Please post our updates on your site or create a link. We must help all barn owners and others know the issues. We must come together on this issue.
- Thanks to all of you for your part - the volunteers helping us directly and all the supporters! You are great! The horses and ponies are very grateful!
- IF YOU HAVE BEEN REASSESSED, would like updates sent to you directly, or would like to offer more help, please contact the ARE MPAC Committee Chairs, Leslie Brooks & Jim Waechter at 519-696-3688 or email JLnet@Quixnet.net. We are continuing to document the impact across the province including the inconsistencies. We may be able to give you some tips. We have been through the process! You may also want to consult a Property Tax Advisor.
New Information - MPAC had a letter sent to the Ministers as a response to our letter writing campaign and they posted it on their website dated Dec 17, 2004. It was inaccurate. It said that selling of horses is commercial. Raising livestock and selling is considered farming. I called MPAC and they are revising the letter. They also wrote that most farms were reassessed from residential to commercial and it is more likely that they went from farmland to commercial. Some may have been residential. They agreed. Please note that they also use the word 'training' to mean training of people - lessons.
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