Halifax Council Requests Provincial Review of Capped Assessment Program
Halifax Regional Municipality council has passed a motion requesting the Nova Scotia government review the Capped Assessment Program, which limits property tax assessment increases but results in higher taxes for new homeowners compared to long-term residents.
Halifax Regional Municipality council passed a motion on Tuesday requesting that a letter be sent to the Nova Scotia provincial government asking for a review of the Capped Assessment Program (CAP). The motion was put forward by Janet Steele, councillor for Timberlea-Beechville-Clayton Park-Wedgewood.
Nova Scotia introduced the CAP in 2005 with the goal of protecting property owners from sudden increases in assessments and taxes. Under the program, the amount the taxable assessment for an eligible residence can increase year over year is limited unless the home is sold. As a result, many new homeowners in Halifax are paying a higher property tax rate than their neighbours who have lived in their homes longer.
Roughly 5,000 homes were sold in the Halifax Regional Municipality last year. Steele estimates that 16,000 homeowners in the Halifax area would pay less in property taxes if there were modifications or reform to the tax cap.
Steele contends that the disparity created by the CAP affects affordability and could prevent seniors from downsizing because the tax rate would be much higher on their new residence. Concerns have also been raised regarding the program's impact on anticipated military growth near a proposed submarine base in areas such as Eastern Passage and Dartmouth South-Woodside-Eastern Passage.
Despite the council's request, Municipal Affairs Minister John A. MacDonald stated that removing the CAP is not currently on his radar.