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Property Assessments for Ontario Horse Farms
Update: Mar 15, 2005
Fixing up the mess!!! - Getting Re-assessments:
They have already started making changes!!! MPAC would like horse farms to call ASAP. A form is being filled out by the call centre staff and they are being given special handling by specifically trained staff. There is no catch - call them. Only 10 have called so far!
If I hear of any issues, I am to call MPAC directly.... let me know.
Horse farm property owners who believe their current assessments are not correct or have been assessed as commercial or partially commercial should phone MPAC at 1-866-296-MPAC (6722) and they will be prompted (press 4) to be directed to specifically trained call centre staff who are ready to initiate the process to have their tax assessments corrected and revised back to Jan 1, 2004.
We are still discussing the retroactive date... hoping to get back further. Watch for updates on this. No promises. It is extremely rare that there are retroactive changes because the municipalities have already budgetted and spent the dollars! There is legislation surrounding this topic. If RFR's or appeals are still open for 2003, then these should be handled OK - the assessments most likely are omitted assessments given to you in 2004. See the Q&A's. You can also call the number above.
When you call, MPAC is going to discuss with you the amount of use(% of time) that a particular area such as an arena is used for lessons or trail riding or riding camp lessons. This will be used to come to an agreement on the % of that value that would stay at a residential rate as opposed to a farm tax rate, if you happen to qualify for the farm rate. For many people the arena was and still will be 100% residential anyway. This is somewhat explained in the Q&A's.
Questions and Answers:
From the home page of MPAC web site, choose "About MPAC" from the top menu, then "Fact Sheets" from the side menu. Here's the direct link
http://www.mpac.ca/pages_english/about_mpac/factsheets.htm
Other Comments:
When MPAC talks about section 19(5) it means to you and me in simple language that the barn and arena will be valued as farm buildings and the 50% obsolescence will apply. This is significant good news! After that the residential or farm tax rate will be applied to that lower value. The reason for the 50% obsolescence is that when farm properties are sold, normally you do not get the full value of farm buildings in the sale price. This is how MPAC adjusts for this fact. Your barn may house horses and in future years it may be other livestock. This handling of the farm buildings is consistent with other farm operations.
An example:
100% boarding facilities are easy - they are at a residential rate or farm rate, if you qualify for the farm rate.
An area used exclusively for lessons, trail rides or riding camp lessons will be at a residential tax rate. If an arena or riding ring is used 10 hours a day - approximately 8 of these are for training, turnout or other riding (farm activities) and 2 hours of the 10 it is used for lessons then 2/10 or 20% will be taxed at a residential rate.The other 80% is at the residential rate also, unless you qualify for the Farm tax rate. Many horse establishments are taxed totally at a residential rate today. The land is also at a residential rate or farm rate. The residence and 1 acre, of course, will still be residential.
If there are updates - they will continue to be put on the OEF website www.horse.on.ca
Please let me know of any issues that come up that do not seem to be right or fair.
Leslie Brooks and Jim Waechter
Volunteer Chairs of OEF/ARE MPAC Committee
519-696-3688
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