The draft regulation concerning the maximum taxable value of agricultural land under the Act respecting municipal taxation proposes several changes to the frequency and methodology of calculating the taxable value for property assessments.

The current regulation stipulates that the maximum taxable value is computed every three years, but the proposed amendment will shift this to an annual computation. This change aims to create a more current and accurate valuation process for agricultural land, ensuring that property assessments reflect yearly market conditions.

The amendment specifies that the indexation rate used to establish the maximum taxable value will now be based on the annual percentage change in the value of farmland as published by Farm Credit Canada, instead of other indexation methods that may have been used previously. This adjustment seeks to align the taxation with real market dynamics, allowing for more precision in determining property values.

The draft regulation is expected to yield short-term savings for farm producers, who will benefit from a reduction in property taxes as a result of the more frequent calculation of the maximum taxable value. The savings are estimated to amount to a few hundred thousand dollars. For municipal taxpayers, the change will likely result in a minor increase in property taxes, but the increase is expected to be less than one dollar. Over the long term, the changes are anticipated to have a neutral effect, with no significant impact on the direct costs for agricultural enterprises or on the administrative costs associated with property tax assessments.

Changes to specific sections of the regulation include amendments to section 2, where the term “every 3 years” is replaced with “each year” to reflect the new annual computation process. Further modifications are made to section 4, which discusses the establishment of a basic list of taxable values, and the term “the 3-year computation” is updated to “the basic list” in sections 10 and 11. Section 13 has been revised to clarify the timeline for the establishment of the basic list. Additionally, the basic list established in 2024 will remain applicable for the property assessment rolls for the years 2026 and 2027, with adjustments made according to the changes in section 46.1 of the Act respecting municipal taxation.

The draft regulation seeks to improve the accuracy and efficiency of property tax assessments for agricultural land by transitioning to an annual computation of maximum taxable values. This shift is expected to provide short-term savings to farm producers, with a negligible impact on municipal taxpayers, while ultimately having a neutral long-term effect.

Quebec (Proposed) March 12, 2025
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