Letter to Minister Allan MacMaster re: Non-Resident Provincial Property Tax

The Honourable Allan MacMaster
Minister of Finance, Nova Scotia
 
{Via email}
 
April 27, 2022
 
Re: Non-resident Provincial Property Tax
 
Dear Minister,

The Atlantic Chamber of Commerce is concerned with the recent announcement in Budget 2022 of a non-resident provincial property tax. We are concerned the objectives of this policy will not be met and that there may be unintentional economic repercussions as a result of its implementation.

Affordable and accessible housing is a priority for our members. It is important Nova Scotians have a place to call home and that the shelter they choose is within their budget. Having affordable access to housing is also important for attracting newcomers and expanding access to labour talent.  

The non-resident provincial property tax proposed will not achieve the objective of affordable housing and it will not increase access to housing. As it stands, the tax will penalize non-residents for owning a property in Nova Scotia and will hurt communities across the province. Many rural communities across the province rely on seasonal visitors, including non-resident property owners, to provide a boost to their economies when visiting.

The measures introduced also discourage investment in the province right from the time of purchase with the new non-resident deed transfer tax implemented. Nova Scotia has a stated goal of doubling the population of the province by 2060, yet these taxes will make it even harder to attract newcomers to the province that may not be able to arrive within the time allotted.  

The issue with the housing market, based upon our consultations, is a matter of supply, not non-residents. There are not enough new properties being built in Nova Scotia and the housing shortages are increasing the cost of shelter. Increasing the supply of affordable and accessible housing throughout the province combined with the present monetary policy objectives of the Bank of Canada will help cool off the housing market, implementing a non-resident provincial property tax will not.  

The Atlantic Chamber, representing 28 Chambers of Commerce and more than 4,800 businesses in Nova Scotia, encourages the Government of Nova Scotia to promptly revisit this legislation and hit pause on this tax. Focusing on increasing supply and removing regulatory burden to build will have a greater impact on the housing market than targeting non-residents.
 
Sincerely,
Sheri Somerville, CEO
Atlantic Chamber of Commerce
 
CC:        The Honourable Tim Houston, Premier of Nova Scotia