Feature Article September 2, 2004
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Ministry of Finance reins in MPAC over Maple Syrupby Jeff Green
The Ontario Ministry of Finance has reversed the industrial property tax classification that was applied to some Maple syrup production facilities by the Municipal Property Assessment Corporation (MPAC) for the 2004 taxation year, according to a news release from the MoF
The announcement, which came on Tuesday, follows an intense effort by Maple Syrup Producers to bring Maple syrup back into the fold as an agricultural product.
Late last year, a decision was made by MPAC to consider the boiling down of maple sap to make syrup an industrial process. That decision turned sugar shacks into industrial buildings, which are taxed at four times the rate that agricultural buildings are taxed.
At the time an MPAC official told the News that sap is indeed an agricultural product and is widely sold, but that the process of turning sap into syrup is indeed an industrial process. The MPAC designation made no distinctions between small and large producers, only between those who sell syrup and those who produce it solely for their own use.
The Ministry of Finance announcement notes there are 2,600 Maple Syrup producers in Ontario, who produce 10% of Canadas syrup.
The Maple Syrup taxation issue has been one of several irritants between the farming community and the provincial government. Minister of Agriculture and Food Steve Peters used the announcement as an opportunity to improve the profile of the government with the farming community, saying The government values the Ontario farming community for both the high quality of products it produces, and for its contribution to the overall health and prosperity of the people in this province.
