TAX NEWS - JUNE 2010

Ontario Tax: Ontario's Tax Plan A Good Fit For Farming Sector

McGuinty Government Supporting Agri-Food Businesses Including St. Eugene Farm

Farmer-entrepreneurs like John Skotidakis of St. Eugene will save hard-earned dollars as a result of Ontario's new tax plan, which includes significant tax cuts and the move to a single, Harmonized Sales Tax (HST).

Skotidakis Goat Farm is a 500-acre goat farm and 24,000 square foot cheese and dairy production facility. After July 1, when Skotidakis purchases computers, freezers or other equipment, he will no longer pay sales tax which will help the company as it expands its operations.

This is a good example of an Ontario agri-food business that will benefit from the new tax reform - a key part of the Open Ontario plan to create jobs and economic opportunities.


QUICK FACTS
 
- The Skotidakis Goat Farm received support from the Rural Economic Development Initiative earlier this year to help expand his business. This will include processing an additional seven million additional litres of milk, manufacture 30,000 cases of cream cheese bars for a major grocery chain, create 10 new jobs and continue to employ 45 people.

- Farmers will continue to pay no tax on the majority of inputs they buy such as feed, seed, fertilizer, farm equipment and machinery, which are currently tax-exempt at the point of sale.

- It is estimated that Ontario's farmers will save about $30 million annually under the Harmonized Sales Tax on items that are currently not exempt from the Retail Sales Tax.