Chatham-Kent farmers could see an increase in their taxes if council approves raising the farm tax ratio at tonight’s council meeting.
Currently, farmers in the area pay 22 per cent of the residential property rate, compared to the 25 per cent paid elsewhere in Ontario.
Municipal administration is proposing a gradual increase, increasing to 23.5 per cent in 2025 and moving to 25 per cent in 2026.
Chatham-Kent farmers have been sitting at 22 per cent since 2004.
The ratio was 25 per cent in Chatham-Kent back in 1998, and lowered to 24 per cent in 2003 and then to 22 in 2004. This was due to the rise in farm assessments and the low commodity prices at the time.
The 22 per cent was only meant to be a temporary reduction, but with farm sales continuing to rise, council left the rate unchanged.
Home prices in Chatham-Kent have increased over the last five-to-eight years, and while farm property values have also increased, it is expected that residential home values will rise more than farms when new Municipal Property Assessments are released. Homeowners will likely see a bigger increase in their taxes, but there is no timeline on this reassessment since the last one was done in 2016.
The issue has come before council several times over the past few years, including August 2024, when council instructed municipal staff to draft a report with recommendations on phasing in the increased rate. Officials with the Kent Federation of Agriculture, however, urged council to hold off on any hike to the farm tax ratio until new MPAC assessments have been completed.
