Does Nova Scotia's hiked deed transfer tax help or hurt housing?

Adam Cooke · CBC News

· Posted: Apr 16, 2025 5:00 AM EDT | Last Updated: 11 minutes ago

There's disagreement successful the Strait of Canso country implicit whether a caller summation successful Nova Scotia's deed transportation taxation for non-resident landowners volition assistance oregon wounded section lodging efforts. 

The tax, which doubled to 10 per cent from 5 per cent connected April 1, present applies to each residential properties with 3 dwellings oregon less, including vacant onshore that is considered to beryllium residential. 

The determination drew occurrence from the Nova Scotia Association of Realtors and last week sparked Richmond County assembly to attack the state and the Nova Scotia Federation of Municipalities with concerns that the summation could hamper the Strait-area lodging market. 

However, not each Richmond councillors hold connected the issue, and a section onshore developer who sells to Canadians and Europeans alike feels the taxation hike could halt bidding wars that person clogged the lodging marketplace since the depths of the COVID-19 pandemic. 

Land developer praises province's 'genius move'

When the taxation summation was introduced arsenic portion of the government's Financial Measures Act, Finance Minister John Lohr described the determination arsenic a means of helping Nova Scotians vie with out-of-province buyers for caller homes. 

Rolf Bouman, the laminitis of the spot income steadfast Canadian Pioneer Estates, agrees with the concept, though helium acknowledges those straight progressive successful location income alternatively than onshore transfers would person an opposing view. 

"As a onshore developer, it's beauteous bully due to the fact that radical volition past determine to physique houses and it gives a batch of employment," said Bouman, whose institution is based successful Aulds Cove, N.S. 

"But arsenic a broker, I astir apt wouldn't similar it, due to the fact that the broker has the occupation to get the highest terms for the vendor oregon seller for a house. And, of course, erstwhile you exclude radical from extracurricular of the province, oregon you marque it harder for them to, successful fact, acquisition land, that mightiness wounded the bottommost enactment for the seller of the house, arsenic good arsenic the broker for their commission."

However, Bouman sees a nett payment from the province's strategy in that it could chill disconnected bidding wars betwixt residents and non-residents. 

"This was a genius determination connected the portion of the province, oregon the premier, oregon whoever came up with the idea," Bouman said. 

"I would person acceptable the taxation adjacent higher. But for now, it's bully wherever it's at."

Richmond County calling for changes 

Meanwhile, Richmond County officials consciousness the state isn't considering however the taxation hike could interaction the section lodging market. They're besides acrophobic the summation is punitive to erstwhile Nova Scotians trying to instrumentality location and lend to the communities they erstwhile near behind. 

"We've got section radical who are flagging these concerns and asking for immoderate reconsideration connected immoderate of the presumption of it," said St. Peter's-area councillor Amanda Mombourquette, who brought the contented to the assembly array earlier this month. 

"Businesses and investors, they similar certainty. So erstwhile we person changes similar this that are truly disruptive to concern models that person been successful spot for immoderate time, it tin make immoderate interest and discourage investment."

Warden Lois Landry, who said at the erstwhile assembly gathering that "there are immoderate advantages to this tax," is hopeful the region and the state tin enactment unneurotic to admit anyone who could beryllium impacted by the caller increase. 

"We person had immoderate concerns from residents astir spot values expanding successful their assessment, and what that does to the spot taxation that you're required to pay," Landry said. 

The region volition ballot connected its adjacent steps regarding the taxation astatine its monthly gathering adjacent week successful Arichat.