By Pam Wright
Local Journalism Initiative Reporter
The issue of raising Chatham-Kent’s farm tax ratio to 0.25 per cent is again before council.
Following a motion by Wallaceburg Coun. Carmen McGregor at a recent meeting, municipal administration has been tasked with reporting back to council on the issue this fall.
In speaking to the motion, McGregor said she gave the matter a “great deal of thought” and part of what she’s proposing includes designating the additional money raised from farmers to fund rural infrastructure.
Citing the cost of rural assets, McGregor said raising the ratio is “one way to dedicate more money to improving and working with the rural infrastructure needs that take place within Chatham-Kent.”
McGregor’s proposal would also see the return to the 0.25 rate phased in incrementally over the next two years.
At 0.22 per cent, Chatham-Kent’s farm tax ratio is unusual, as 80 per cent of the farmland in the province is taxed at the .25 rate. Changing the ratio is revenue neutral to the municipality and would simply shift some of the overall tax burden to farm properties.
The municipality lowered the rate to 0.22 per cent in 2012 in response to tough economic conditions in agriculture due to low commodity prices.
Since 2021, raising the farm tax ratio has come before council four times without success, the last time in May 2023.
As in the past when the issue came up, deputations were made against it.
In speaking to council, Kent Federation of Agriculture president Brad Snobelen urged council to keep the status quo until Ontario’s Municipal Property Assessment Corporation (MPAC) undertakes the next assessment cycle. Current tax rates are based on MPAC’s last assessment carried out in 2016.
Snobelen said “nothing has changed” since council last turned down the farm ratio hike in 2023, adding it’s clear that administration doesn’t respect council’s decisions.
“There’s no justification to making any changes at this time,” Snobelen said.
However, Chatham Coun. Brock McGregor, who has chaired C-K’s budget committee for the better part of the past decade, said the farm tax ratio should be reviewed annually, and waiting for MPAC could take a while.
“We’ve been waiting for the MPAC numbers for a very long time and I don’t share any optimism that that wait is going to be short,” McGregor told council.
North Kent Coun. Rhonda Jubenville said that after speaking with constituents she couldn’t support raising the ratio, as commodity prices have again taken a downturn.
South Kent Coun. Anthony Ceccacci said he believed the report will spark further engagement with the rural community, noting council “can always say no.”
The farm tax ratio report from administration is to be circulated to the KFA and the Christian Farmers Federation of Ontario.
