Roughly 5,000 homes were sold in the Halifax Regional Municipality (HRM) last year, and many of those new owners are paying a higher property tax rate than their neighbours. “Is there a way to make the assessment program fair? Fair for new homeowners, fair for the people we hope to attract here to set up families here with the growth that we’ve been experiencing?” says Janet Steele, councillor for Timberlea-Beechville-Clayton Park-Wedgewood. “The CAP (Capped Assessment Program) is a provincial program and it applies to all municipalities across the province so the province wouldn’t be able to make a change just for HRM.” To get answers, Steele put forward a motion requesting a letter be written to the province asking for a review of the Capped Assessment Program. The motion passed at council’s Tuesday meeting. The program limits the amount the taxable assessment for an eligible residence can increase year over year unless it is sold. “That divide is going to increase and it’s going to make affordability more difficult for new homeowners,” she says. According to Steele, there are 16,000 homeowners in the Halifax area who would pay less property taxes if there were modifications or reform to the tax cap. “I look at all of the requests we get coming in, but if you’re wondering if the CAP is being removed, it’s not on my radar,” says Municipal Affairs Minister John A. MacDonald. Steele contends the CAP could prevent seniors from downsizing because the tax rate would be much higher on their new residence. She also points to the anticipated military growth and the possible negative effects on members. One of those areas will be around the proposed submarine base in Eastern Passage. “We do expect the growth and yet what will happen there will be expected. People will come in knowing what the housing stock will be,” says Becky Kent, councillor for Dartmouth South-Woodside-Eastern Passage. Nova Scotia introduced the CAP in 2005 with the goal of protecting property owners from sudden increases in assessments and taxes. For more Nova Scotia news, visit our dedicated provincial page
