Seasonal residents decry proposed tax measures for non-N.S. residents

More than two dozen people from across Canada and the United States with connections to Nova Scotia virtually told the legislature's law amendments committee that new property tax measures for non-residents are unfair, punitive and won't achieve the aims set out by the government.

The budget tabled by Finance Minister Allan MacMaster last month includes a new five per cent deed transfer tax when non-residents purchase a residential property and a new property tax of $2 per $100 of assessed value applied to buildings with three or fewer units owned by non-Nova Scotia residents.

Halifax resident Hans Boggild, whose sister summers in Nova Scotia, said the new measures are "unjust, arbitrary" and discriminate against seasonal residents who return year after year and are great promoters of the province.

"These are friends and neighbours who have invested their time, creativity, energy and money into our beautiful province," Boggild told the committee.

Like many presenters, Boggild said he fears the increase in taxes will drive some people away from Nova Scotia. 

"Just because they own a property in Nova Scotia and live somewhere else does not mean they are rich and can afford such a tax," he said.

Exemptions for rural vacation homes suggested

Boggild suggested an exemption for Canadians who own rural vacation homes. Other presenters proposed exemptions for residences that are not winterized and grandfathering the new provisions for people who have owned their properties for a certain period of time.

Premier Tim Houston told reporters at Province House that no one likes to pay more taxes, but the government has obligations it needs to meet and investments it wants to make, and that requires money.

Houston pointed to a provision in the budget that forgives the provincial income tax on the first $50,000 earned by Nova Scotians who are in the trades and younger than 30.

"That investment costs money and we just kind of looked at what's the best way to make sure the government can deliver on the services that it needs to deliver on," he said.

Although it was first presented as a way to cool the province's overheated housing market and perhaps increase availability, MacMaster later said it's unclear if the new tax measures will be able to achieve those goals.

Multiple presenters on Thursday referred to MacMaster's comments and said they do not believe the new taxes will do anything to help the province's housing crisis.

Proposed taxes create 'mistrust'

Clair Duff, who splits her time between Ontario and Nova Scotia, said the proposed tax measures are discriminatory and divisive.

"It creates mistrust," she said. "Why would you do that today?"

Duff said the government has presented no facts to justify the plan or show how it will help with housing.

"As a recovering banker, if you had come to me with this proposal, it wouldn't have been approved for funding because we've got no facts to support it," she said.