Nova Scotia eyeing taxes for homebuyers coming from outside the province
BNN Bloomberg
Buying a home in Nova Scotia may soon be more expensive for people from outside the province.
Premier Tim Houston has instructed Finance Minister Allan MacMaster to implement a deed transfer tax on any property purchased by individuals who do not pay taxes in Nova Scotia.
In a September mandate letter, the finance minister was also asked to impose a levy of $2 per $100 of assessed property value on every non-Nova Scotian taxpayer with property in the province.
The letter did not provide a timeline for implementation, though finance, and treasury board spokesperson Gary Andrea said in an email that "the department is working on it."
However, realtors believe the taxes -- targeting investors in hopes of slowing down the market and helping maintain housing affordability for locals -- will have a minimal impact and do little to address the market's main problem: lack of supply.
"To the wealthy people that buy these homes as an investment, (the tax is) going to become part of the cost of doing business, but I don't think it's going to deter people," said Jacqui Rostek, a Nova Scotia broker with the Platinum Group Halifax.
"It will work, but mostly for smaller time investors that are still very much working their jobs and trying to save enough money for a down payment on another property."
