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Property Assessments for Ontario Horse Farms
Read The Ministry of Finance - News Release.
Commercial Tax Eliminated!
Today, Minister of Finance, Greg Sorbara, has formally directed the Municipal Property Assessment Corporation (MPAC) to adopt and implement the recommendations put forward in their report on appropriate criteria for assessing equestrian facilities.
In response to a letter writing campaign, Sorbara had asked MPAC in early February to meet with representatives from equestrian associations to develop the appropriate criteria. The Ontario Equestrian Federation (OEF) and the Association of Riding Establishments of Ontario (ARE-ONT), the Ministry of Agriculture and Food, MPAC and the Ministry of Finance participated in the discussions. The Ontario Federation of Agriculture and the Christian Farmers Federation of Ontario were also consulted to provide insight into the views of the farm community on this issue.
During the discussions, the OEF made it clear that any resolution to this issue must not impair the horse industry’s economic viability as well as provide consistent taxation treatment across the horse-racing and equestrian industries.
To this end, MPAC recommended to Sorbara that: (1) only activities that occur on equestrian facilities that are commercial in nature will be treated as commercial property (tack shops, premises used to sell equestrian supplies or clothing; restaurants; snack bars; cafeterias; commercial race tracks and slots; grandstands; banquet halls; and areas used to provide black smith, farrier or other retail services to the public). (2) Activities that are agricultural in nature will be assessed at their current use value and classified as residential or as farm. These uses include: maintaining, raising and selling horses; breeding horses; boarding horses; and training horses, excluding the training that naturally occurs during riding lessons offered to the public. (3) Some activities MPAC proposes be considered as rural recreational in nature, similar to the way in which other land intensive, rural recreational activities, such as golf courses and ski hills. Where land is used exclusively to provide riding lessons, trail rides, or riding camps to the public and not in conjunction with any other farming activities; bunkhouses or camping facilities; or where horses are kept for recreational or hobby purposes; would be classified in the residential tax class.
This announcement comes as a huge relief to the many horse farm owners who have been reassessed at a commercial property tax rate by MPAC as well as the thousands of others who have yet to be reassessed.
The OEF and ARE-ONT are both extremely pleased with the Minister’s ruling. "The OEF, along with volunteers Leslie Brooks and Jim Waechter, have devoted a lot of time and effort towards this issue. We are delighted to see that equestrian facilities will now be assessed in a fair and equitable manner," stated OEF President, Allan Ehrlick.
There may be some unique circumstances and minor details that still need to be discussed, but the OEF and MPAC have agreed that they would continue to work together to resolve any issues that may arise.
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