Mapleton Township isn’t happy with the impact of the province’s farm property class tax rate program on municipal coffers and plans to make some noise about it.
Mayor Neil Driscoll asked Perth-Wellington MPP Randy Pettapiece to deliver that message to Queen’s Park when the local member attended the May 12 council meeting.
Pettapiece was at the meeting to discuss provincial and municipal issues.
Prior to 1998, owners of properties assessed as farmland paid 100 per cent of their assessed tax, then filed an application with the province to receive a 75% rebate, paid directly by the province.
Since 1998, farmers pay property tax on only 25% of the assessed value of their property (excluding their residence and one acre surrounding it). That means costs that were once shared province-wide now fall on the non-farm municipal tax base.
Driscoll told Pettapiece the “cheap food policy” hits farmland-heavy municipalities like Mapleton hard and asked for the MPP’s help to “get the message to Queen’s Park.”
The Conservative MPP agreed to raise the issue with the Liberal government, noting “this is something that has been brought up by municipalities in the past and you have to keep after them.”
Driscoll pointed out the issue does present a conflict for municipal councils like Mapleton, which also represent farmers.
“The OFA (Ontario Federation of Agriculture) is asking them to make the 25% rate even lower,” he stated.
Councillor Lori Woodham suggested Mapleton could draft a resolution on the topic and seek support from other municipalities.
Driscoll agreed a resolution could be considered at a future meeting.
However, councillor Michael Martin pointed out the issue is a complex one, noting Mapleton’s urban consumers benefit from the “cheap food policy,” not just those from major cities.
Keeping the pressure on
During his presentation, Pettapiece told council his party is working to ensure the concerns of municipal councils are heard in the legislature.
“What we do is we keep on the government,” he explained.
Pettapiece noted one area of success for municipalities has been the province’s restoration of a discontinued program that helped pay for maintenance on provincial highways passing through urban areas.
“One of the things we are pleased with is that they’re bringing back the Connecting Link program, although there won’t be as much money put in as there was before,” he said.
However, the MPP said he was disappointed that despite years of lobbying by municipalities, and “all-party support” for changes, the government has declined to alter joint and several liability provisions, which often compel municipalities to pick up the tab for lawsuit settlements, even if found only fractionally responsible. The system puts upward pressure on municipal insurance premiums.
Pettapiece also said the government’s current approach to infrastructure funding, which factors in a municipality’s ability to pay, discourages good financial management at the municipal level.
“The municipalities that have managed their finances well and built up reserves are being penalized and we don’t think that’s fair,” he stated.
“The government doesn’t want to borrow any more money than it has to so they’re asking you to do it for them.”
Pettapiece also told council he’s working with businesses and Chambers of Commerce in the riding to oppose the government’s plans to establish an Ontario Retirement Pension Plan.
He said the 1.9% premium the plan would place on both employers and employees would have a negative impact on business and employment in the province.
“It’s going to affect a lot of people,” stated Pettapiece.
