Rising farmland value in Quinte West sparks fears of a property-tax hike

Some parcels of farmland in Quinte West have seen property values double in this year’s land value assessment, which could mean a spike in property taxes over the next four years. Photo by Matthew Murray, QNet News.

By Matthew Murray

QUINTE WEST – Farmland values are on the rise in Quinte West, the Municipal Property Assessment Corporation told city council Monday night, sparking fears of potential property-tax hikes.

High demand for farmland and low interest rates caused the jump in values, Catherine Barr, account manager for the Hastings, Northumberland and Prince Edward County area, told Quinte West council.

The presentation caused a stir among council members, with some saying they fear a possible spike in property taxes for farmers over the next four years. Some farm properties in Quinte West have seen their assessed value double since 2012, according to Barr.

She explained to council that the value MPAC assigns to a specific property is based on sales of similar farmland. MPAC then gives these values, as well as the values of residential, industrial and commercial properties, to the city so it can adjust property-tax rates accordingly. However, the agency has no control over what the city decides to set taxes at – it simply values the property, Barr said.

“Reassessment is not a cash grab,” Barr said. “It’s a rebalancing of the values to help cities determine who pays what.”

Frank Vreugdenhil, a cattle and crop farmer in Quinte West, said he’s seen the value of his 170-acre parcel go up since the last MPAC assessment in 2012. If property taxes keep going up, he said it will hurt local farmers.

“It’s gonna make everything hard for everyone,” he said. “Farm commodity prices are at an all-time low again so their income is already hurt.”

In the past, MPAC has lowered the value of his property after he spoke with the agency, Vreugdenhil said. It’s something he said he would do again if he felt the value was higher than expected.

“I think everybody should [speak with MPAC about land values] and then they should go to council and argue that they need to lower the mill rate,” he added.

When property values grow, Vreugdenhil said he would like to see the city cut the mill rate, the scale used to calculate property taxes, so that it isn’t taking more money than it needs from people.

Deputy Mayor Jim Alyea said one parcel of vacant farmland he owns went from being valued at around $230,000 to being assessed at over $500,000 this year. He says the increase shocked him and that the possibility of residents paying twice the property-tax rate in the next four years is something he said he “couldn’t even begin to justify.”

“I realize the increase is going to be over four years,” Alyea added, “but it’s such a massive increase. Even phasing it in over four years, it’s still going to be a hard hit if [the property-tax rate] stays the way it is.”

Once all of the assessments are delivered, Alyea said he thinks council will hear concerns from more farmers in the area. Those who have already spoken with him say they feel the evaluations aren’t fair or realistic, he said. An MPAC info session to better explain the rise in land values would be helpful for the community, he said.

Quinte West council will receive an update from MPAC in November on the commercial and industrial land values in the region before a complete list of property assessments is given to the city in December. That final list will then be used by council to adjust the tax rate for 2017.