Grey County farmers will see a further reduction in their tax rate in 2020. County Council has approved dropping the farmland tax ratio to 21.8 per cent of the residential property tax class, a decrease of 2.2 per cent from 2019. The decision was made during the April 23 Committee of the Whole meeting through a recorded vote. The change, which still requires by-law approval, will apply to both the County and local municipal tax ratios.
“Council’s decision to lower the farmland tax rate solidifies our Council’s support for local agriculture,” said Grey County Warden Paul McQueen. “Grey County farmers will have more stability in their tax bills this year as higher land values continue to be phased in. This is important at a time when farmers are facing increased challenges with processing and labour due to the COVID-19 pandemic.”
In 2019 Grey County reduced the farm tax ratio from 25% of the residential rate to 24% of the residential rate. Lowering the rate from 24% to 21.8% will save the approximately 7,615 farm class tax properties $219,839 in County taxation. This amount will be shifted to other tax classes. The largest portion, $187,847 will be shifted to the residential tax class. This equals about $4.08 of a County tax increase on a residential home valued at $300,000.
As property assessment values increase in most tax classes, it doesn’t mean municipalities are collecting more taxes. Assessment changes only impact the share of the total levy paid by a property owner. Municipalities only collect enough taxes to deliver services at the levels set by councils. In 2020, Grey County’s budget calls for the collection of $59.8 million.
To learn more about property values and assessment, visit the MPAC website.
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