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
"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
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):
- $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 www.fin.gov.on.ca
For further information:
For further information: Mike Arbour, Minister's Office, (416) 325-4138;
Scott Blodgett, Ministry of Finance, (416) 325-0324