More Family Farm Transfers Exempt From Land Transfer Tax



    McGuinty Government Supports Next Generation Of Ontario Farmers

    TORONTO, Oct. 10 /CNW/ -

    NEWS

    Ontario is expanding exemptions under the land transfer tax to include
transfers of farmland from a family farm corporation to one or more family
members.
    As a result of the new exemption, a family transferring a farm valued at
$500,000 would save $5,975 in land transfer tax (LTT), and a family
transferring a farm valued at $1,000,000 would save approximately $13,475 in
LTT.
    The exemption complements existing LTT exemptions that apply when
farmland is transferred from a family member into a family farm corporation,
and when farms change ownership between members of the same family.

    QUOTES

    "We understand that farming families face unique challenges. This
tax-relief measure will help families pass on the farming tradition to future
generations and build a more sustainable agriculture industry," said Finance
Minister Dwight Duncan (http://www.fin.gov.on.ca/english/about/min_bio.html).
"It is part of our commitment to building a stronger, more prosperous rural
economy."
    "Ensuring the smooth succession of the family farm supports the continued
participation of new generations of Ontario farmers and supports the
prosperity of rural Ontario," said Leona Dombrowsky
(http://www.premier.gov.on.ca/team/biography.asp?MPPID=44), Minister of
Agriculture, Food and Rural Affairs.

    
    QUICK FACTS

    -  This measure was first announced in the 2008 Ontario Budget and, upon
       filing of the regulation, would take effect retroactively for
       qualifying farm transfers after March 25, 2008.

    -  Eligible family members include: spouse, child, mother, father,
       brother or sister and spouse/ descendants, aunts and uncles and their
       descendants. Grandparents, certain spouse's relatives and a
       transferor's same-sex spouse are also eligible family members. This is
       consistent with the current LTT exemptions for family farm transfers.

    LEARN MORE

    Check out the details of the proposed LTT exemption
(http://www.rev.gov.on.ca/english/notices/ltt/0608.html).

    Learn more about the government's investments in agriculture and rural
Ontario (http://www.omafra.gov.on.ca/english/index.html).

    Find out more about Ontario's Rural Plan
(http://www.omafra.gov.on.ca/english/rural/indruralplan.htm).


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For further information:

For further information: Alicia Johnston, Minister's Office, (416)
325-3645; Scott Blodgett, Ministry of Finance, (416) 325-0324

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