Municipalities barred from charging storm water fees to farm and managed forest properties — with refund obligation

Plain-language summary · AI-assisted · not legal advice

A new rule blocks municipalities and local boards from imposing storm water management fees or charges on land classified as farm property or managed forests under the Assessment Act. The ban has a narrow exception: if storm water from the affected portion of a property drains directly from an on-site storm sewer into a municipal storm sewer system, the charge may still apply. Where fees were already collected contrary to this new limit, the municipality or local board must refund the affected amounts and pay interest — at the lowest Bank of Canada Schedule I prime rate — starting either from when the rule takes effect (for pre-existing payments) or 90 days after receipt (for payments made after the rule takes effect). Farm operators and managed forest landowners who have been paying municipal storm water charges should review their accounts to determine whether a refund may be owed.

Who this affects: farm property owners · managed forest landowners · municipalities and local boards imposing storm water charges · municipal finance and compliance staff