Chatham-Kent Council is once again looking at a potential increase to the farm tax ratio in the municipality.
During Monday night’s meeting, council voted in favour of instructing municipal staff to draft a report with recommendations on possibly phasing in an increase to the farm tax ratio that would bring it back to the province-wide rate of 25 per cent of the residential rate. The increase would be raised incrementally in 2025 and 2026.
The motion was brought forward by Ward 5 Councillor Carmen McGregor, who said the issue has come to council multiple times over the last several years, with council voting each time to maintain the status quo.
“What I really picked up in the last discussion around this table with this council was the need for consultation in the community,” she said.
Chatham-Kent currently has one of the lowest farm tax ratios in the province at 22 per cent, while around 80 per cent of other municipalities and regions have a farm tax ratio of 25 per cent.
Administration’s report will also look at shifting an equivalent amount of the taxation to pay for rural infrastructure in 2025 and 2026.
“We know the costs and the funding problems we have with rural infrastructure. This is one way we can dedicate more money into improving and working with the rural infrastructure needs within Chatham-Kent,” said McGregor.
In a deputation to council, Kent Federation of Agriculture President Brad Snobelen urged council not to move forward.
“Such a move would have a significant impact on local agriculture in rural communities. As such, there is no justification to making any changes at this time,” he said.
Snobelen said council should not proceed with any increase to the farm tax ration until new Municipal Property Assessment Corporation (MPAC) assessments have been completed. However, the province paused all reassessments in 2016 with no firm timeline for their return.
Council has asked that the report be presented to council in the fall and that it also include an engagement strategy for the agricultural community.
“Without the information, without the consultation and without engaging, then how do we truly make this decision,” said McGregor.
The report will be circulated to the KFA and the Christian Farmers Association in advance of council’s meeting in the fall.