McGuinty Government expands sales tax exemption for farmers

    Ontario Farmers to Benefit from New Definition of "Farming"

    TORONTO, Aug. 28 /CNW/ - To help ease the tax burden on Ontario's
farmers, the McGuinty government is allowing more farming activities to be
retail sales tax exempt, Finance Minister Greg Sorbara announced today.
    "The expanded RST exemption will allow farmers to invest more money into
their farms," said Sorbara. "It will also help to maintain a stronger, more
sustainable farm sector in Ontario."
    Effective August 28, 2007, the definition of farming will be changed to
ensure certain post-harvest activities, such as cleaning, sorting, grading,
packing, packaging and storing crops will be included in the RST exemption. As
a result, more activities will qualify for the RST farm building materials
exemption and farm equipment and supplies exemption, provided the building or
equipment is used exclusively in the business of farming.
    To claim the exemption, farmers must present the supplier with their
farmer identification (ID) card or provide a valid Purchase Exemption
Certificate (PEC). Since April 1, 2005, farmers have been able to use their
general farm organization ID cards in place of PECs to obtain point-of-sale
RST exemptions.
    "The change to the RST exemption is yet another example of the respect
this government has for Ontario's farmers," said Leona Dombrowsky, Minister of
Agriculture, Food and Rural Affairs. "I want to thank the farmers who have
worked with their local MPPs to bring about this change that will help farm
families prosper."
    Details about the expanded definition will be available in an Information
Notice to be sent to retailers of farm building materials, equipment and
supplies, and farm organizations.

    The government has made strategic investments to help rural communities
foster partnerships and pursue innovative approaches to challenges and
opportunities. These investments include:

    -   OMAFRA Expenditures for Farm Income Stabilization and Support
        (2003-04 to 2006-07): $1.12 billion
    -   Farm Property Class Tax Rate Reduction (2006): $300 million
    -   Retail Sales Tax Exemption for Agricultural Goods (2006): $250
    -   Fuel Tax Exemption for Coloured Fuel Used in Farm Equipment (2004):
        $43 million
    -   $500,000 Lifetime Capital Gains Exemption (2006): $45 million
    -   Value to Farm Corporations of Small Business Corporate Income Tax
        Rate (2006): $27 million
    -   Expected OMAFRA Expenditures for Agricultural Drainage Infrastructure
        Management (2006-07): $6.5 million
    -   Expected OMAFRA Expenditures for Nutrient Management Assistance
        (2006-07): $5.6 million
    -   Land Transfer Tax Exemption for Transfers of Farm Land between Family
        Members (2006): $5 million.

    Disponible en français

                 For more information visit

For further information:

For further information: Mike Arbour, Minister's Office, (416) 325-4138;
Scott Blodgett, Ministry of Finance, (416) 325-0324

Organization Profile

Ontario Ministry of Finance

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890