Cannabis facilities are relatively new in Ontario. As the industry continues to develop, MPAC is reviewing the assessment and classification of these types of facilities based on differences in operations at each property.
Are cannabis facilities considered industrial or agricultural?
We’ve been hearing this question a lot lately, and in MPAC’s view the answer is “both.” The determination of a property’s classification is based on the property’s use and is driven by the facts at each site.
A property may be classified as industrial for locations that:
- process cannabis similar to other pharmaceutical facilities
- change the consistency of the plant into a more marketable product
- are generally located in urban areas
- have a licence for processing cannabis
A property may be classified as farm (or residential if the farm does not qualify for the farm tax class) for locations that:
- are used solely for the growth and harvesting of the plant
- are similar to other farming operations such as nurseries or tobacco
- are generally located in rural areas
- have a licence for cultivating cannabis
Assessment and classification based on use
At facilities where the growing and processing of cannabis is occurring on the same site, and where they have a licence for both cultivating and processing, the property may be classified as value-added farm. In this case, the land used for cultivating would be assessed as farmland and the buildings valued base on their design, for example as a greenhouse, warehouse, etc. The buildings used for cultivation and the land under the building would be classified as farm (or residential if the farm does not qualify) – whereas the building used for processing and the land under the building would be classified as industrial. Stay tuned for further updates.