Ontario’s Finance Ministry announced April 1, 2005, that farmer ID cards issued by general farm organizations like the Ontario Federation of Agriculture (OFA) can now be used to gain Retail Sales Tax (RST) exempt status at point of sale.
“OFA has been working with the provincial government for five years to get this convenience for its members,” says Ron Bonnett, OFA President. “Farmers will now be able to buy their farm-related items without paying provincial sales tax, saving themselves the tax and the time it previously took to apply to the province for a refund,” he says.
Hon. Steve Peters, Ontario’s Minister of Agriculture and Food, in his announcement of the development, said “the McGuinty government is acting on advice from general farm organizations and keeping a promise made in our last budget.”
To get the RST exemption when buying farm-related products, the farmer must show the Farmer ID card to the vendor. Items purchased this way are not for resale or used by a manufacturer, the government’s news release explains.
Farmers who have chosen not to have a Farmer ID card can still use their Purchase Exemption Certificate (PEC) to buy farm-related items exempt from RST.
“This is another achievement OFA has made for its members across the province. The $150 membership fee farmers pay to belong to OFA is definitely a great investment,” Bonnett says.
~Ron Bonnett~
President, Ontario Federation of Agriculture