By Keith Doucette
Rising the tax would successfully add a “tariff” on Canadian consumers at a time when the nation is attempting to scale back inner commerce obstacles, says Suzanne Gravel, who will assume the presidency of the Nova Scotia Affiliation of Realtors on the finish of March.
The 2025-26 provincial finances would enhance the tax to 10% from 5% as of April 1, with officers estimating the rise would elevate an extra $13 million.
“Nova Scotia has simply shut the door” on out-of-province consumers, Gravel stated in an interview Friday.
“In the event that they wish to purchase a cottage property … they’re going to assume twice about the place they’re going to go, if not financially then merely on precept.”
Gravel stated the tax enhance will drive potential consumers away and cut back funding, significantly in rural areas.
She stated she is scheduled to seem earlier than a listening to of the legislature’s public payments committee on Monday, the place she’s going to voice objections on behalf of the greater than 2,000 members of the affiliation.
Earlier this month, Finance Minister John Lohr stated the tax enhance would give Nova Scotians a “slight benefit” after they bid for properties towards out-of-province competitors at a time when reasonably priced housing is briefly provide.
However Donna Harding, with Engel & Volkers actual property company in Halifax, takes situation with the minister’s assertion.
Harding stated nearly all of out-of-province consumers are buying seasonal cottage properties or camps located on plenty of land. Many are Nova Scotians dwelling in different provinces who wish to purchase property to allow them to retire of their native province.
“They don’t seem to be shopping for the Nova Scotia inventory of houses that first-time consumers wish to purchase,” she stated, including that the share enhance would add $30,000 to the price of a $300,000 cottage.
“Nobody can afford that,” stated Harding. “The minute that anybody in Canada realizes that Nova Scotia has positioned a tariff of 10 per cent … they aren’t going to come back.”
The deed switch tax applies to all residential properties, or to a portion of a property thought of residential with three dwelling items or much less. It additionally applies to residentially zoned vacant land.
Lars Osberg, an economics professor at Dalhousie College, stated deed transfers act as a “tax on a transaction.”
“It places a wedge between the worth the customer pays and the worth the vendor will get,” stated Osberg. “It implies that consumers can pay extra and sellers will get much less.”
He known as the tax primarily a “rural phenomenon” that may do little to have an effect on housing shortages which might be considerably extra pronounced in Halifax, including that it additionally spares giant property house owners on the expense of center class householders.
“It doesn’t contact in any respect the individuals who personal residence buildings and that’s the large cash,” Osberg stated. “It taxes small cash however it doesn’t tax massive cash.”
This report by The Canadian Press was first printed March 14, 2025.
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Atlantic John Lohr Keith Doucette Nova Scotia Regional Suzanne Gravel The Canadian Press The Nova Scotia Affiliation of Realtors switch tax
Final modified: March 14, 2025
