Emily Plihal
Local Journalism Initiative Reporter
At its Oct. 15 regular meeting, Northern Sunrise County council discussed farmland tax rates and the possibility of raising its mill rate in upcoming taxation years.
“During the County’s Strategic Planning session on Oct. 28, 2023, a general conversation took place regarding farmland taxation, and the revenue stream that it provides the County,” explains Reeve Corinna Williams.
“Part of the discussion was on the difference between the size of farms from many years ago to the current size of many farm operations that are now like a corporation, over a family run farm,” she adds.
“The other important piece to note is that farmland has been assessed in the current manner from back in the mid 1980s, so there is a requirement to also follow the current Farmland Manual dated from 1984.”
Farmland is regulated under the Municipal Government Act (MGA) and the Alberta Farm Assessment Minister’s Guidelines, so municipalities are not able to move outside of legislation regarding farmland.
The County can increase its farmland mill rate to increase revenue.
“The County has always held a strong belief around the importance of our farm producers and the role that they play in food sources around the world,” Williams notes.
“Only a small percentage of the county’s landmass is agricultural land, and we want to preserve what we do have.”
Currently, Northern Sunrise County’s Municipal Farmland Tax Rate is only 7.6 per cent, generating just $220,952 in revenue each year. Neighbouring municipalities all have higher mill rates. Birch Hills charges 18.1865 per cent, the M.D. of Smoky River is 24.2 per cent, County of Northern Lights
9.1904 per cent, M.D. of Spirit River 11.2 per cent, and M.D. of Mackenzie is 35.7 percent (they realized a 12.354 per cent increase in 2023).
“Following the review of the information presented, council made motion to have further discussions on the mill rate at the council’s upcoming strategic planning session on Oct. 28,” Williams says.
“We value the importance of agriculture within the county, and we are extremely fortunate to have a strong industrial assessment base that helps keep our residential and farmland rates lower than other municipalities.”
Williams notes that municipalities set their own municipal mill rates depending on revenue requirements. In Northern Sunrise, the average farmland assessment (for all sizes of parcels) is 13,007, and the highest farmland parcel assessment in the county is 31,910. The municipal portion of the 2024 Tax Rate was 7.6 mills. This means that for the average parcel approximately $99 in municipal tax is owing, and the highest value parcel (31,910) will have a municipal tax burden of $243.
“There is a maximum 5:1 ratio that applies to non-residential versus residential mill rates; however, farmland, as defined by the Municipal Government Act is not subject to this requirement,” Williams says.
Council will continue its deliberation at the end of the month.