Changes are coming this spring to the new non-resident property tax.

The two percent tax on any property owned by people who don’t call Nova Scotia their full-time home was introduced by the provincial government as part of the budget during the spring sitting of the legislature.

At the time, Premier Tim Houston said the tax will be used to address the housing crisis in Nova Scotia.

In a release detailing the proposed changes Houston says, “We love our seasonal residents, and we will continue to show them our Nova Scotian hospitality and welcome them with open arms, but my main concern is for the people who are or want to live here year-round but can't afford a place to live,” said Premier Houston. “We are positioned to grow in every region, but we need housing. This is one way our government is addressing the housing crisis and these changes respond to concerns we have heard from Nova Scotians.”

Opposition MLAs have voiced concerns the money raised from the tax will be going into the province’s general revenues and not into a dedicated envelope directed at increasing housing availability.

In response, government says they intend to spend more to address the housing crisis than will be received in revenue from the non-resident property tax.

Critics says the tax unfairly targets people with family cottages and members of the military.

Under the changes being introduced this spring, active Canadian Armed Forces personnel will be exempt from paying the non-resident property tax and rates for other non-residents will range based on the assessed value of their property.

The first $150,000 of the assessment will be exempt, 0.5 percent will be charged on properties valued between $150,000 and $250,000 and those over $250,000 will be taxed the full two percent.

All vacant residential land owned by non-residents will be taxed at two per cent regardless of the assessed value.

And any property sold to a non-resident will be charged the five percent deed transfer tax, which was also introduced this spring.

Premier Tim Houston announced the changes May 3, during the State of the Province address.

The province says the changes will help military families and provide relief for owners of small cottages while clarifying the tax for vacant residential land owned by non-residents.

Reported by Ed Halverson 
E-mail: edhalversonnews@gmail.com
Twitter: @edwardhalverson

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