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Old 06-02-2023, 09:29 AM   #12419
CroCop
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Join Date: Mar 2006
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Quote:
Originally Posted by bizaro86 View Post
It is true, quote with link below. There are specific grants for rural areas that nobody else is eligible to receive:


Source:https://www.alberta.ca/k-to-12-educa...ing-model.aspx

So because it costs more to deliver education rurally they get more money. I don't have any issue with that, it makes sense that everyone who lives in AB should get a good education - but everyone who lives in AB should also contribute equitably through taxes.

Also, because funding is based on a 3 year average population size, areas that are growing quickly (which is cities and suburban bedroom communities) have their funding partially based on old lower populations, while declining population rural areas have their funding partially based on older higher populations.



Every other land use pays property tax on fair value except for farmers. Daycares, doctor's clinics, etc., all of which also have social benefits. It's objectively unfair that the provincial property tax burden falls disproportionately on residential uses and every other industry other than farms. There's no reason they shouldn't pay taxes on actual values like everybody else. The political power of farmers is the reason they don't.

As for capital gains taxes on price increases, every other industry pays that as well when assets change hands, so I'm not sure I see why that should exempt farmers from paying appropriate levels of property tax. And already the first $500k of farming capital gains is tax free. My sympathy for a couple who has to pay capital gains tax (at half of income tax rates) on their gains once they exceed a million dollars is limited. The homestead portion of a farm is also free from capital gains tax.
Every farmer I know pays annual land tax to their MD or County on each quarter or parcel they own. As far as the personal capital gains exemption that does not go very far when land value has risen 10X of what it was in the 90s and probably close to 30X what is was in the 60s and not the 1/4 as stated earlier. Many of these farms are now being sold and not handed down to the next gen so these taxes are being paid at a huge inflated amount. Don’t worry about farmers not paying taxes, they pay their share and them some.
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