Prince Edward Island has amended the Revenue Tax Act Regulations, effective May 31, 2008, to change the definition of “farmer” to mean individuals, corporations or partnerships who are actively engaged in farming or custom agricultural contracting and:
- earn at least $10,000 of their gross annual income from farming and custom agricultural contracting;
- earn at least 25 per cent of their gross annual income from farming and custom agricultural contracting; or
- are registered in the province’s “Future Farmer Program”.
The latest amendments also include provisions to:
- extend the time limits for a revenue tax refund application to 7 years for a part-time farmer growing blueberries, and to 10 years for a part-time farmer growing cranberries or apples;
- grant authority to the Minister to refund tax paid by an eligible farmer on stream crossing building materials; and
- add certain items to the list of machinery and equipment that may be acquired exempt from tax when purchased by a farmer for farm use, including anti-backflow devices, vacuum columns, gearbox pans, safety switches, packaging materials, thermometers, and time and temperature recorders.