Are grain bins equipment or buildings?
Keystone Agricultural Producers would like to know because the answer could make a big difference on a farm or seed plant owner’s tax bill.
“In some parts of the province, they were being assessed as equipment, while in other areas they were always being assessed as buildings,” said Ian Wishart, vice-president of KAP and chair of the group’s assessment and taxation committee.
With production buildings not exempt from the education tax credit, having grain bins listed as equipment resulted in significant savings, Wishart said.
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In talks with tax authorities, KAP has offered a solution. Since bins on skids can be moved around according to specific needs, they ought to be considered as equipment.
On the other hand, permanent grain storage facilities should be assessed as buildings.
“The more we started asking questions, the more we discovered that they are not being handled consistently,” he said. “We’ve asked for a clarification, which we have not received.”
Wishart said larger operations might have a lot of bins, costing up $20,000 each. Ten such bins assessed as buildings could cost a farmer $1,200 to $1,500 a year in property taxes, he added.
“It’s likely something that can be solved very simply once we have a decision.”
