New property assessment and increased tax exemption amendments intended to support farmers were introduced by the Province, announced Ida Chong, Minister of Community, Sport and Cultural Development.

The proposed legislative amendments implement two of the recommendations made by the Farm Assessment Review Panel (FARP). The amendments are intended to encourage more intensive agriculture operations in the province and provide property tax relief supporting retired farming families in the Agricultural Land Reserve who wish to remain on the farm property.

The Province will also implement two other FARP recommendations through regulatory amendments and policy changes, which will reduce the administrative paperwork for farmers and provide more flexibility in meeting the requirements to maintain farm status.

The changes are expected to take effect in time for the 2013 Assessment Roll. Further details will be announced once the amendments come into force.

Quotes:

BC Agriculture Council chair Garnet Etsell -

"British Columbia's agriculture producers strive to prosper in a highly competitive business environment. We welcome the Province's decision to enshrine in law recommendations of the Farm Assessment Review Panel that support the enterprise and hard work of farming families across the province."

Quick Facts:

The proposed amendments to implement the Farm Assessment Review Panel's recommendations will:

• Increase the exemption limit on farm outbuilding improvements (does not include the residence).
• Extend farmer's dwelling and home site farm classification to retired farmers in the Agricultural Land Reserve for farms that stay in production.

The exemption for farm improvements will be increased to the greater of 87.5 per cent or $50,000 of assessed value. Currently, the exemption is a maximum of $50,000 of assessed value. Farm improvements do not include residences.

Two FARP recommendations will be implemented through regulatory amendments and policy changes:

• Reduce the administrative paperwork for farmers by changing the farm income reporting period to be consistent with the Canada Revenue Agency's income tax reporting period (i.e., a calendar or fiscal year).
• Provide more flexibility in meeting the requirements to maintain farm status by expanding the list of Primary Agricultural Production (PAP).

The FARP submitted its report and recommendations to government on July 31, 2009.

The Province implemented two FARP recommendations for the 2010 assessment year, which clarified the rules for the split classification of Agriculture Land Reserve (ALR) and non-ALR farm properties.

The panel was appointed by the Province in February 2008 and conducted a provincewide review of the existing regulations and policies to ensure the farm assessment process is fair, equitable and streamlined.

The panel included co-chairs Saanich Mayor Frank Leonard and John Rustad, MLA for Nechako Lakes, as well as local government representatives, a cross-section of B.C's agriculture community, the BC Assessment Board and others.

Learn More:

For more information on the Farm Assessment Review, go to:

http://www.farmassessmentreview.ca/

Contact:

Jeff Rud
Communications Director
Ministry of Community, Sport and Cultural Development
250 953-3677