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

There is a divide in the Strait of Canso area regarding the recent increase in Nova Scotia’s deed transfer tax for non-resident landowners. The tax, which doubled to 10 per cent from five per cent on April 1, now applies to all residential properties with three dwellings or less, including vacant land considered to be residential.

The Nova Scotia Association of Realtors and Richmond County council have expressed concerns that the increase could negatively impact the housing market in the area. However, not all councillors in Richmond agree on the issue, with a local land developer who sells to Canadians and Europeans believing that the tax hike could actually alleviate bidding wars that have been prevalent since the COVID-19 pandemic.

Rolf Bouman, the founder of Canadian Pioneer Estates, praises the province’s decision, calling it a “genius move.” He believes that the increase in the tax will encourage more people to build houses, creating employment opportunities. While Bouman acknowledges that brokers may not be in favor of the tax hike as it could affect their commissions, he sees the overall benefit in cooling off bidding wars between residents and non-residents.

On the other hand, Richmond County officials feel that the province has not taken into account how the tax hike could impact the local housing market. They are also concerned that the increase could be punitive to former Nova Scotians looking to return home and contribute to their communities. Councillor Amanda Mombourquette brought up these concerns at a recent council meeting, stating that the changes could disrupt business models and discourage investment.

Warden Lois Landry, while recognizing some advantages of the tax increase, is hopeful that the county and the province can work together to address any potential impact on residents. The county will be voting on its next steps regarding the tax at its monthly meeting in Arichat.

Overall, the debate over the deed transfer tax increase in Nova Scotia continues, with differing opinions on how it will affect the local housing market. While some see it as a positive step to address bidding wars and encourage local development, others are concerned about its potential negative impact on former residents and investors. It remains to be seen how the situation will unfold and what steps will be taken to address the concerns raised by various stakeholders.