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April 2000, Vol. 24, No. 3
AgriNews Interactive www.agrinewsinteractive.com

Fair boards cry foul over loss of property tax exemptions
By Tom VanDusen

It’ll be "the beginning of the end" for Ontario’s agricultural societies if their exemption from commercial property taxes under Bill 66 is lifted by the province.

So says Renfrew County’s Donna Campbell who addressed a panel of Liberal MPPs chaired by Sean Conway which held a fact-finding discussion in the county recently.

"Bill 66 has been working fine," Campbell said. "Why try to fix something when it isn’t broken. We are asking you today to take our concerns over Bill 66 back to the Harris government."

Speaking on behalf of agricultural societies in the towns of Renfrew, Beachburg and Cobden which sponsor annual fairs, Campbell said board members couldn’t rebound from the financial crunch if taxes were suddenly imposed and if transfer payments now in effect are dramatically reduced.

"Agricultural societies play an important role in the local community and without adequate funding, the agricultural fair will not be able to survive."

As one example, Campbell cited the Town of Renfrew fairgrounds assessed at $1.3 million. A rough estimate of taxes on the property would be $51,600 a year, an expenditure which, she said, could never be absorbed.

The province is currently reviewing the provisions of Bill 66 which provide the tax exemption and allow 234 societies to automatically incorporate at no cost, a process which is mandatory as it reflects legal liability, credibility and accountability.

The government has also helped fund fair board operations through the transfer administered by OMAFRA, also under review. Campbell said the average grant to societies is $4,034 and is based on expenditures for competitions, exhibitions, capital repairs and fair losses.

The legislation was last updated 12 years ago. OMAFRA minister Ernie Hardeman recently ordered another review, partly on grounds some Ontario societies and their fairs have become big businesses generating impressive profits and no longer need help from taxpayers.

The government has been slammed by the Liberal Party’s agricultural critic for undertaking the exercise hard on the heels of the loss of OMAFRA regional offices and extension services.

In a letter to Hardeman, MPP Pat Hoy said rural communities have already been dealt a terrible blow and could find themselves under more pressure, to the point "the many fall fairs that showcase Ontario produce and farm achievements would surely cease to exist."

"This would be a shameful attack on a group of volunteers who are having to pick up the slack that your ministry has created through cuts, downloading and the closure of OMAFRA offices."

Campbell repeated that refrain. Emphasizing that board members are volunteers and they’re assisted by scores of other volunteers to create a successful fair, she said the workload is heavy enough without worrying about raising funds to cover property taxes.