Ontario Exempts Family Farms From Land Transfer Tax
The McGuinty government is building a stronger, more prosperous rural economy by exempting the land transfer tax for farms that change ownership between members of the same family, Agriculture and Food Minister Steve Peters announced last Thursday.
“This will help pass on the farming tradition to future generations,” said Peters. “Ensuring the smooth succession of the family farm is a key element in building a more sustainable agriculture industry and stronger rural communities. With this exemption, we are making it easier for farm families to plan for the future, which will ultimately benefit all of rural Ontario.”
The exemption is effective as of March 28, 2003, and applies to farmers who transfer land from one family member to another, typically when a new generation is taking over a farm. It complements an existing exemption that applies when farmland is transferred from a family member into a family farm corporation.
“The strength of Ontario depends on the strength of rural communities, as well as our cities,” Finance Minister Greg Sorbara said. “The agriculture industry makes an important contribution to this province’s economy and quality of life. We want to encourage the continued participation of new generations of farmers in Ontario.”