Licence fees and remittance forms
Market licencing fees are deemed automatic. All Ontario sheep market persons are deemed subject to Ontario licencing requirements, including the obligation to pay licence fees and submit market information returns. All persons marketing sheep in the province of Ontario are to be aware of the Farm Products Marketing Act (FPMA) requirements.
Effective January 1, 2017, a direct purchaser of live sheep (other than at auction) in Ontario will assess fees to the seller and remit the licence fee to Ontario Sheep Farmers. This aligns all producers, feedlots, brokers/agents or other buyer types with consistent remittance and reporting expectations. Sellers continue to be assessed the licence fee, but all situations will now require the buyer to provide an information report with their remittance. A proper invoice should be exchanged to show that the seller was assessed a fee on each sale.
| Market role |
Licence fee obligation |
Reporting and remittance |
| Producer - seller/custom processing |
$2.20 +HST due on live sales or custom processing; or 1.5% of gross raw wool sales |
Fees are collected and remitted within 30 days by the buyer (whether direct buyer, via auction market or processor) |
| Producer - buyer (direct) |
Assesses fee to the seller, then reports and remits |
Must report all purchases and remit fees collected on all purchases within 30 days |
| Auction market |
Assesses fee to seller, then reports and remits |
Must report sales and remit fees collected within 30 days |
| Processor (direct purchase) |
Assesses fee to seller, then reports and remits |
Must report purchases and remit fees collected on all purchases within 30 days |
| Processor (custom processing) |
Assesses fee to customer, then reports and remits |
Must report custom processing rendered and remit fees collected within 30 days |
How to Remit Your Fees and Report
All Ontario sheep market persons are deemed subject to Ontario licencing requirements including the obligation to pay licence fees and submit market information returns.
As of January 1, 2017, buyers of live sheep and wool will now assess and remit licence fees. This does not apply to sheep that are purchased at an auction. It is the duty of the buyer to collect fees and report purchases.
Note: It is highly recommended that a formal invoice be provided on each sale. If there is not a proper selling invoice exchanged (i.e. a cash sale with no invoice exchanged), sellers may be held liable for the FPMA fee. Sellers can elect to self-remit in these situations.
What does OSMA do to manage the licence fee system?
Ontario Sheep Farmers emphasizes education and dialogue to encourage market regulation awareness, but it is the responsibility of Ontario sheep market participants to understand and comply with the Ontario sheep market regulation. Ontario Sheep Farmers recommends that all participants contact the office if there are any questions regarding the Farm Product Marketing Act regulations or their licence fee collection/remittance responsibility.
The FPMA gives Ontario Sheep Farmers authority to request Ontario sheep market activity data and reports from market participants, and the authority to conduct office-based verification checks or onsite compliance visits/investigations. OSF’s primary goal is to promote compliance through education and communication, but further action is sometimes necessary.
Ontario Sheep Farmers has the authority to hold regulatory hearings when inspections find a contravention of FPMA regulation. Hearings can make binding legal decisions that can include penalty and/or removal of Ontario sheep market privileges. While Ontario Sheep Farmers regrets the necessity of holding hearings, it is obligated to do so to ensure that required license fees are being fully and fairly collected on behalf of producers, and to support marketplace integrity. Outcomes may be communicated at public markets and in media publications.
Payment
Licence fee payments are accepted via cheque (payable to the Ontario Sheep Farmers) or by credit card (Visa or MasterCard). E-transfer to finance@ontariosheep.org, add contact information in message. To pay via credit card please call the Ontario Sheep Farmers office at 519-836-0043.