OFA provided comments to the Department of Finance Canada regarding their consultation on the taxation of vacant lands.
OFA strongly recommend that lands used for agricultural purposes be exempt from any vacant land tax, regardless of their zoning classification. Agricultural lands can be zoned as residential, rural, industrial, or mixed-use due to municipal planning decisions beyond the control of farmers. Exemptions should be based on the actual use of the land, ensuring that farmers are not penalized due to zoning nomenclature or for essential aspects of their operations.
While OFA understands the federal government’s goal to increase housing development, it is crucial that the implementation of a vacant land tax does not adversely affect the agricultural sector. Preserving agricultural lands is essential for food security, environmental sustainability, and the economic well-being of rural communities.