The Order-in-Council 856-2024, dated May 22, 2022, introduces amendments to the Regulation respecting the maximum taxable value of the land for agricultural operations under section 231.3.1 of the Act respecting municipal taxation (chapter F-2.1). This regulation is significant for determining the maximum taxable value of farmland used for agricultural operations when calculating municipal property taxes across a municipality..

This amendment is aimed at being a balanced approach to taxation, especially in response to changing land values and economic conditions. In recent years, farmland values have risen sharply, with increases of 10% in 2021, 11% in 2022, and 13.3% in 2023. Given these trends, there is a need to recalibrate the maximum taxable values for agricultural land to ensure fair taxation.

The urgency for this amendment is due to several factors. First, the spike in farmland values in recent years necessitates a swift update to the taxable value framework. Second, the necessary data for calculating these maximum taxable values was only recently finalized, further compressing the timeline. Third, the Regulation must come into effect before June 1, 2024, as this is the deadline for publishing the maximum taxable value that will apply to future property assessment rolls. These assessment rolls are used to adjust tax levels for the next three years, ensuring that the taxation system aligns with the current land market conditions.

The amendments in the Regulation make two key changes to the process for setting maximum taxable values for agricultural lands. First, the second paragraph of section 2 of the Regulation is replaced to specify that by June 1 of each year preceding the implementation of a new property assessment roll, the maximum taxable value for agricultural lands must be published in the Gazette officielle du Québec. This ensures transparency and timeliness in how the taxable values are communicated to the public and municipalities.

Second, the amendment also stipulates that for the assessment rolls taking effect on January 1, 2025, the notice detailing the maximum taxable value must be published no later than June 15, 2024. This creates a clear timeline for the implementation of the new taxable values and ensures municipalities and property owners are well-informed of their tax obligations well in advance.

The steep rise in farmland values necessitates a revision of the maximum taxable values, ensuring fairness and efficiency in the municipal taxation system. The changes made to the Regulation regarding the timing and publication of these taxable values aim to provide clarity, prevent delays, and support the equitable treatment of agricultural operations in Quebec’s municipalities.

Quebec (OC 856-2024) May 29, 2024