A new optional tax subclass classification has been established for small scale on-farm businesses.
A report was brought forward to Prince Edward County council during their committee of the whole meeting on Thursday afternoon at Shire Hall to inform councillors of the changes.
The change by Municipal Property Assessment Corporation (MPAC) determined there were 20 properties in Prince Edward County that would fall into this new subclass which would provide sustainable property tax treatment to farmers who engage in small scale processing or retail activities as a direct extension of their farming business.
The 20 identified by MPAC are classified as “farm with winery”.
Councillor Stewart Bailey asked if only wineries would fall into this classification as they were the only ones identified in the report.
Revenue Services supervisor Ellen Hamel said operations like a farm with sugar bushes, farm with a distillery, farm with a brewery could fall into this new classification but they need to have the commercial or industrial classification on their property.
Hamel said many are classified as farm or residential at this time, but if they were to get the changed classification and meet the other criteria, they could then become eligible for the new subclass.
The change does carry some repercussions as the municipality will have to write off $13,562 as a result of the corrected assessments of each eligible property.
Council approved a motion to adopt an optional small scale on-farm business subclass for the industrial and commercial tax classes and would opt in beginning January 1, 2020.
The report from Hamel said making the subclass effective in 2020 limits the unbudgeted financial impact and allows the reduction to be absorbed through a tax shift onto the other assessment classifications.
Final approval of the change will come at their next meeting later this month.
