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For immediate release New Tax on Ontario Farmland QUEEN’S PARK – Today in the Ontario Legislature Ernie Hardeman, Oxford MPP and critic for Agriculture, Food and Rural Affairs, said that with Dalton McGuinty’s tax grab farmers will now pay a 13% sales tax on farmland. “OMAFRA sent out information explaining that even farmland is going to be part of the tax grab. That means that farmland in Ontario will have a 13% sales tax,” said Hardeman. “Imagine the young farmer, who is just starting out and doesn’t even have a GST number yet, now having to pay 13% tax on the purchase of the farmland.” The GST/HST Info Sheet distributed by OMAFRA says that the sale of farmland by an individual is subject to GST/HST except for “limited circumstances”. The fact sheet cites a number of examples, such as the sale of a farm to a daughter who will have to pay the HST if she chooses to farm it. “If you are selling the farm to your neighbour – whether he farms it or not – he will get hit with 13% DST,” said Hardeman. “At $10,000 dollars an acre this will add $80,000 to the cost of a 100 acre farm.” During his statement Hardeman pointed out that this is only one of the ways that the new Dalton Sales Tax will negatively impact farmers. Farm families will have to pay an increase of 8% on items they use everyday from – their morning coffee to gas to drive the family car to newspapers. In addition the loss of a point of sale exemption for sales tax will result in many farmers increasing their borrowing while they wait for rebates. “How can anyone believe that this government supports new and young farmers when they add to the start-up costs like this,” said Hardeman. “Do the right thing for farmers, seniors and families and scrap the Dalton Sales Tax.” - 30 - For more information, contact:
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