In the 2021 Fall Economic Statement, the Provincial Government stated its intent to increase the limit on the Farm Forestry Exemption (FFE) for farm woodlots from 20 to 30 acres to keep pace with the growth of farm sizes.
FFE is a tax exemption designed to protect wooded areas. Farmers with farm property or farm property holdings with wooded areas may qualify for the exemption. Previously, the tax exemption applied to one acre of forested land for every 10 acres of farmland and could not exceed 20 acres in any one municipality.
Changes were enacted with the Bill 43 amendment to section 3(1)19 of the Assessment Act to allow the Minister of Finance to prescribe a higher number of acres. O. Reg 230/22 was filed to increase the acreage maximum per farm property owner in a municipality from 20 to 30 acres effective January 1, 2023.
These changes also involved the creation of a new Unit Class (FF), which you will see in your systems in early 2023. The increase to the assessment roll on valuation will show as exempt and aligns with other tax incentives such as Managed Forest Tax Incentive Program and Conservation Land Tax Incentive Program.
Key Highlights
MPAC is implementing changes to modernize the entire process and provide transparency to municipalities and property owners.
We will continue to provide municipalities with updates and additional information on our progress. If you have any questions, please contact your Municipal and Stakeholder Relations Account Manager.