The Proposed Taxes On Out-Of-Province Homeowners Are Ill-Considered

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  • Ok then. The stories in the newspaper and on this forum are compelling, yet Houston is displaying a sense of unreasonableness that will damage him and his party; and more significantly Nova Scotia’s reputation. This is potentially the beginning of the end for NS and it’s solid run of good governance over the last 7-8 years or so. Politics of resentment will not end well – despite what long in the tooth inwardly looking Nova Scotians are telling Houston. I feel so bad for NS.

    Greg | April 24, 2022 | Reply

    • Greg thanks for this. I am disappointed that the government did not at least modify the plan to avoid hitting unintended targets.

      Bill

      Bill | April 24, 2022 | Reply

  • Thanks for the article. Fits me like a glove.. My response to the Law Amendments Committee:

    Members of the Law Amendments Committee,
    I and my two retired sisters own an inherited cottage in Northport, on the Northumberland Strait. It has been in our family for decades. Last year we paid $2,093. in property taxes. If the proposed 2% Non Resident Tax had been in effect last year our taxes would have been $5,733. an increase of $3,640..
    Our cottage is not winterized and would require proper heat, insulated flooring and water pipes and a proper road / lane in. In other words it’s unsuitable for residential habitation so it would do absolutely nothing to alleviate Nova Scotia’s (Halifax’s) housing problems.
    What this proposed tax does is discriminate our cottage ownership as opposed to residents of Nova Scotia that also owns a cottage such as ours. So I’ll be a setting of cottages where some just pay the regular income tax and others, like us, are burdened with an unfair, discriminatory, nearly tripled property tax. I would hope the decision to exclude current residents from this stifling tax isn’t based on multiple properties owned by members of the provincial Legislature or by a political calculation that non Nova Scotia residents lack of voting weight vs residents that could vote the current majority out of office. To us it represents nothing more that a tax grab based on flimsy reasoning..
    To cut to the chase I consider this bill to be unfair, discriminatory and should be tabled so that a proper, fair and just solution can be found for the housing problem. I was born in Springhill and will be buried there at the Hillside cemetery to join my parents, grandparents, etc. unless you decide to put an unfair, out of province, death tax on the family plot too.
    Sincerely,
    David W. Pippy
    Canadian
    Native Son of Nova Scotia

    David W. Pippy | April 11, 2022 | Reply

  • Your article reminds me of what Premier McNeil called his biggest mistake. Several years ago he decided to triple Pharmacare charges ($400 TO $1200). I Called my MLA, She claimed to be totally unaware of the change.
    The government axed the increase.
    I think my friends at Mildord House will be very unhappy.
    Reply from Bill Black:
    Thanks Don. I had not thought of that comparison but it is a good one.

    Don Maling | April 10, 2022 | Reply

  • One of the arguments proponents of the tax roll out is that out-of-province home owners “do not pay their fair share.” This has been shown to be nonsense, given that these owners (1) pay higher uncapped property taxes (2) pay capital gains should they sell (3) tend to spend more than locals contributing to HST and (4) are ineligible for the most expensive government services (health care and education).

    But, given that the “don’t pay their fair share” argument motivates many who support the property tax, here is a better idea.

    The Province should require out of town homeowners not covered by other Provincial health insurance (i.e., at least all foreign owners) to buy Provincial health insurance. This will provide immediate cash flow for Houston’s # 1 priority. It is also a service to cottage owners because travel insurance is excessively costly and loaded with gaps. However, should this person present at a Nova Scotia hospital, he/she will be rendered a “charge based” bill that is astronomical.

    David Richardson | April 9, 2022 | Reply

  • Today’s article is dead on. I’ve been in contact with my MLA telling him that the policy needs to be rethought. As it stands it appears to be simply a “tax grab”. e.g. to say that my summer neighbours cottage which doesn’t have year round water is contributing to the urban housing shortage is ridiculous.
    Hope the rethinking will occur. Cheers.

    Jamie Muir | April 9, 2022 | Reply

  • Letter sent to the Herald:
    There have been a few letters written with the sentiment that ‘Rich Come From Aways’ can afford to pay extra in taxes. If they can afford to have a Vacation property in NS, we have no sympathy for them.
    Be Careful with your lack of fairness and empathy. This extra tax money is being collected by a ‘Huge Financially Irresponsible Beast’.
    The time will come, and it will come, when they levy an additional tax on every Nova Scotian who owns a Seasonal Cottage, Camp, Fishing Cabin or Trailer. If you can afford to own these ‘extras’, you will surely not mind paying extra in taxes to fund the Beast.
    We need much more attention to ‘The Expenditures’ than ‘The Revenues’.
    David Fry… Halifax

    David Fry | April 9, 2022 | Reply

  • Excellent column Bill. Well-articulated and balanced.
    It will be interesting to see what kind of response it receives from your readers.
    Well done.
    Reply from Bill Black:
    Thanks
    The print edition of the Herald had two full pages with my piece, one by Noah Richler, and several letters on the topic.

    Tom Eisenhauer | April 9, 2022 | Reply

  • That was a great article in New Start Nova Scotia.
    Enclosed herewith is our message. Feel free to use it as you see fit.
    Thank You, Brian Wilson

    Premier Houston , Deputy Premier MacMaster, and MLA Susan Corkum-Greek, Lunenburg.

    Can you hear the sucking noise of Capital leaving the province?
    If your Government implements this discriminatory non resident tax plan you surely will hear the noise while all residents will share the pain.
    Please be advised In the short term this will not affect me directly.
    However, it will affect our family plans to build new homes, to purchase more properties and the direction of our long term plans..
    AS a X Pat Nova Scotian with 5 adult children who spent their first 27 years of cherished summers in Nova Scotia it will have an unbeneficial outcome for their future in Nova Scotia. For 27 years I have been paying more taxes to Lunenburg County with little to no services than my home in Ottawa which has a tax base that can afford any service while living in 10 times the structure.
    Like plenty Nova Scotians I had to move away to scratch out a living.
    It was painful to leave family behind. You had to do what you had to do !
    Your proposal is a slap to the head. We feel Cheated !
    This is something out of Klaus Schwab’ s The Great Narrative to “Build Back Better” while destroying anything in its way.
    It was one of my Ancestors in 1751- 1752 (Master John Joseph Wilson) who was the Master or Captain of one of the Vessels (Speedwell)
    that made two trips to bring the severely persecuted Calvinist Huguenots from Rotterdam Europe.
    Master Wilson lost a few crew on the way which were buried at sea.
    That must have been a gruesome trip. That is how long my Ancestor’s have been in NS.
    The Wilson Ancestors retooled from the Atlantic Sea to Annapolis Valley Agriculture. From Apple growers to Milk Producers.
    The separation of resident /non resident tax payers does not pass the sniff test of fairness and may be considered criminal. This is a shot over the bow for wealth transfer between Provinces. The beginning of Consumer Provincial Provincialism. Canadian Provinces need to compete for residents. The other provinces will surely benefit especially Alberta. Real estate surcharges did not work in BC or Ontario. I don’t see a slew of new business going to PEI.
    Money, Labor and Capital Investments have no borders and I can hear the sucking sound of Capital leaving the province. The Risk Profile for the Province of NS has become hostile to Non Resident Investors by a very dangerous and short sighted policy.
    A non residence property owner with an assessed value of $700,000 which has a current tax bill of around $6000.will experience an increase to $20,000. Give your collective heads a shake!
    This will be the end to many small business in small town NS. The proposed plan of 2 million new residence will be in jeopardy and surely fail.
    Outside Capital investments will revalue the risk profile. There will be plenty small towns like Chester that will find it challenging.. The trades, contractors, realtors etc. that make money from ” Come from Away’s” should be fighting this short sighted plan with hammers and torches.
    It is a Pure Tax Grab on people you don’t believe can influence the next election.
    Nova Scotia will be recognized as a hostile investment jurisdiction and will suffer the consequences.
    Outside Business and New Businesses will revalue their plans to the determent of Nova Scotia.
    Attracting new high net worth residents will become a challenge. The predictability of trust will be broken.
    Please reconsider this disastrous myopic plan against your current valuable non resident tax payers and save yourself.

    Brian V. Wilson | April 9, 2022 | Reply

  • Thank you for your comments on the non resident tax proposal. We are eighth generation Maritimers educated in Nova Scotia and moved away as young adults for opportunities across Canada. Our parents lived here until they died, and our cousins fill the valleys of this Province both on top and under the ground. We come back each year to our cottage in Baddeck and host a six month long guest house for visitors from Upper Canada and beyond. I am the Board Chair of a local Nature Trust and active in a variety of N.F.P. activities in the county.
    I suppose we will afford the proposed tripling of our municipal tax by the cutting back of discretionary spending, not eating out as much, not attending local theatre and maybe making smaller donations to an endless series of worthwhile causes. Maybe won’t do the repair and maintenance of the old place until it’s a “must be required. ”
    We are lobbying our MLA Keith Bain whom we know quite well from the relationships formed during the above activities and have joined with neighbours in our letter writing campaign.
    The tax and transfer proposal is ill conceived and will not secure the needed increase in housing for residents. It is a broad axe taken to a task that requires a scalpel. Other Provinces have instituted more nuanced and appropriate schemes. Our government needs to rethink this approach and you have suggested a more appropriate road to follow.

    Henry and Betty Mugg | April 9, 2022 | Reply

  • Great article… hopefully other full time NS residents will voice their opinions / opposition to the current tax proposal as well.
    I must admit I’m a little surprised that this type of short sighted, poorly conceived legislation has been brought forward by a Conservative government.
    It is ironic that I’m going to be taxed for not moving back home… even there are no employment opportunities/ positions for me as a sub-specialized sport medicine orthopedic surgeon… as far as I know they still have some under employed new graduates in the province that are still looking for positions.

    Robert Giffin | April 9, 2022 | Reply

  • I couldn’t agree more with every word in your article!
    We are retired Nova Scotians living in Alberta and we spend about four months each summer at our cottage in Cumberland County. We will be greatly affected if this tax becomes legislation and, as you said, it will do nothing to help with Nova Scotia’s housing shortage.
    I have written to the Premier, the Finance Minister and the MLA for Cumberland North. I also started a FB conversation encouraging others in our cottage community to do the same.
    Since we don’t get to vote for the “ignor-anus” (new word) who is proposing this money grab, our only option is to be very vocal on social media and mainstream media.
    Thank you for your article. Let’s hope it gets lots of attention!

    Eleanor Wagner | April 9, 2022 | Reply

  • Very nice comparison between provinces – that exposes NS as being unreasonable and potentially foolish if this backfires. What is most concerning is that Tim a Houston did not conduct a thorough analysis of all the factors. If he did, this one size fits all approach would not have been implemented. Is this the first crack in Houston’s credibility. I think it is. Such foolishness will not go over well with his own base. On another note, with inflation soaring, why did Houston not index the basic personal amount for NS taxpayers. Throw us a bone on tax relief and this is an easy one.

    Greg | April 9, 2022 | Reply

  • Right on Bill. I thought our Premier was a smart person, but these measures are plain dumb, and will deter tourism, and penalize individuals with vacation or family homes who have come to Nova Scotia for years.

    Ron Gregor | April 9, 2022 | Reply