British Columbia farmers who improve their farms’ outbuildings may soon expect a larger exemption on their farms’ municipal tax assessments for their trouble.
The province last week announced it aims to legislate changes in time for the 2013 tax assessment roll allowing an exemption for farm improvements — apart from farm houses, that is — up to the greater of 87.5 per cent or $50,000 of assessed value.
That’s up from the current exemption of up to a flat $50,000 of assessed value, the province said. Farm improvements do not include residences.
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The province said it will also extend the "farm" classification for tax purposes to retired farmers living in the provincial Agricultural Land Reserve for their dwellings and home sites, as long as the farm remains in ag production.
The province said it also plans to formally change the farm income reporting period to be consistent with the Canada Revenue Agency’s income tax reporting period — that is, a calendar or fiscal year. The move is meant to reduce "administrative paperwork" for farmers.
Furthermore, the province last week pledged to provide "more flexibility" in meeting the requirements to maintain "farm" status for tax assessment purposes, by expanding the list of eligible Primary Agricultural Production (PAP).
The province’s proposed legislative amendments are to help carry out two of the recommendations made in 2009 by the province’s Farm Assessment Review Panel.
The new legislation, the government said, is meant to "encourage more intensive agriculture operations in the province, and provide property tax relief supporting retired farming families in the Agricultural Land Reserve" where such farmers wish to remain on the farm property.
"Further details" will be announced once the amendments come into force, the province said.
Related stories:
B.C. tax panel urges phased-in redefinition of "farm," Aug. 1, 2009
B.C. ends split classifications for some farms, Nov. 29, 2009
