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Good day - I am reaching out to you to ensure you are aware that the Provincial government in the budget last week increased the Provincial Deed Transfer Tax from 5% to 10% effective April 1st, 2025. This egregious tax impacts anyone from outside NS purchasing property in NS (even our fellow sons and daughters).
I have reached out to the Premiers office, and to the Minister of Finance along with every single MLA and every single news outlet locally and elsewhere to try and get this story picked up so that Nova Scotians are aware this is happening.
This tax has far-reaching effects on every aspect of NS, from the economic impacts, to social, charity and small businesses. Below, I have outlined the various concerns. This is yet another legislative change, implemented without consultation or economic analysis, on the impacts this will have on the rural NS towns and communities, most of which can ill afford to experience further economic downturn.
First and foremost, we are the ONLY province taxing fellow Canadians who come into this province to buy real estate, at a time when the Premier is opening the border to trade? This is a tariff against our fellow Canadians and we need to stand up together and have the PDTT tax not only reversed but abolished. These buyers will go elsewhere to purchase their seasonal and/or retirement homes, pulling revenue away from our NS towns and rural communities. The other Atlantic provinces will benefit while Nova Scotians will, yet again, be harmed.
Fellow Nova Scotians - Many buyers who purchase have strong ties to NS, many of which grew up here or plan to move back here from other Canadian cities. So, in reality, this tax affects Nova Scotians who may not at present work in Nova Scotia but have strong ties here.
The PDTT does not open housing for Nova Scotians - This tax was meant to open more housing for Nova Scotians during a period in our history when there was a shortage of affordable housing. But, examining that philosophy at the outset, one clearly can see that this tax does not “open more housing for Nova Scotians”, as the housing these out-of-province buyers are purchasing, is generally not attractive to local Nova Scotians as the price points go above the range of local purchasing. Moreover, these out-of-province buyers are going to often very rural areas, and purchase properties that NS families are not interested in.
Post Secondary Institutions - The other group that will be hurt by this latest increase to the PDTT are our post secondary institutions. Many parents must purchase housing for their children to come to NS and take their post-secondary education in all areas of NS. There are insufficient affordable rental options in many areas both inside HRM and in rural NS, and as such, these parents have no choice but to purchase housing for their children to occupy while attending our universities, community colleges and other institutions. This 10% PDTT will turn those students (and parents) to other provinces in Canada, reducing attendance at our post-secondary institutions and harming their already tightening margins due to reduced tuition.
Geographically Targets and Harms Rural NS - This tax does not provide more affordable housing in the larger sectors like HRM, as these buyers are not purchasing their properties in HRM (other than for students coming to HRM for school). This tax directly and unequivocally harms the smaller rural communities. The small businessperson in rural NS is yet again being targeted by legislation, and decisions made, without consultation or any study to determine its viability. Let's not forget that these seasonal residents pay a higher tax rate already, yet they do not draw on schools, local infrastructure and many other services like healthcare, yet their tax dollars are there for Nova Scotians to benefit from. The big picture, however, will be that reducing those revenues puts all rural communities at risk as the government will have less funding available for highways, aging infrastructure, and important local amenities like hospitals, clinics, and arenas, and will help de-stimulate growth in those areas.
Charity - Many of these "seasonal residents" are active members in their communities and very generous with local charities that need help. Not only do they donate their time and energy, they generously give to the communities they belong to. Yet another group who can ill afford to see their revenues decrease.
Tourism - This 10% PDTT will also harm tourism directly, when individuals look at where to visit this coming summer, they will not want to invest their tourism dollars in a province that shuts its housing borders to other Canadians, and those outside the country. In turn, this will make it extremely difficult for those small community businesses that rely on the tourism months, to keep their doors open as the loss of revenue from seasonal homeowners will be lost, further devastating their business’s bottom lines. Moreover, when word gets out that NS has closed its borders, there will be fewer folks coming to experience our province on principle.
Economic Ramifications to Rural NS - Whether it is from the revenue generated from the initial purchase of land and housing in rural communities, the devastation to local economies is far-reaching and moves into every economic sector in those rural areas. From the loss of local tax revenues, property management companies, renovators, repair firms, small builders, well, septic and excavator’s firms, architects, lawyers, local restaurants, local shops, and grocery stores, this 10% PDTT will harm every facet of our small, rural economies.
Closing our Border to Canadians - This 10% PDTT comes at a time when Canadians are coming together all over our beautiful country to eliminate interprovincial barriers to trade, and to open this country to work together. At this crucial time politically, when the rest of Canada is coming together, we are closing our borders not just to foreigners, but to our fellow Canadians. Simply, the PDTT should be abolished as a result, not increased to 10% in 2025. Our history and our heritage have been one of welcoming our Canadian neighbours and outsiders in. NS is now saying to the rest of Canada that they are not welcome to come to NS and purchase, which for many who have ties to NS, will be devastating. Isn’t this a violation of Charter 6 of our Canadian Charter of Rights which should allow Canadians to move freely within our country, and not be discriminated against? Moreover, for those foreigners who purchase property outside the Banned areas, they bring so much culture and diversity to rural NS.
Existing Homeowners - The homes that the 10% PDTT targets are not typical NS homes, but vacation properties located primarily in rural NS. This tax will now seriously harm those owners from selling their properties, abruptly affecting the flow of revenues from the usual housing turnover in these communities, which results in a loss of revenues in every facet of the local economy and ultimately reduces the tax revenues realized while bringing these property values down as there will be no buyers for these properties. The other factor here is that at 10%, buyers will simply attempt to negotiate the 10% off the purchase price, so the people paying the price will often be Nova Scotian home sellers.
Transfer of Property Ownership – Many seasonal owners of properties transfer their properties to their children, and many Nova Scotian seniors wish to transfer their properties to their children. But, if the children live and work at present outside Nova Scotia, the PDTT is triggered, which means their children are taxed 10% of the assessment value at transfer. Many of these children are from Nova Scotia and are simply working in other areas of Canada or outside the country, and they plan to retire back in Nova Scotia, which should be their right to do so.
PDTT Increase May Provide Less Revenue than the 5% - The government is anticipating revenues of 28M versus the 11.5M under the 5% tax previously levied, but these funds may never be realized as people will not pay the 10% on a sale. For a $600,000.00 vacation home, for example, that equates to $60,000.00 on top of the Municipality’s Deed Transfer Tax to pay. This will stop the movement of property, make no mistake about it.
The Premier needs to re-visit this egregious policy which will harm ALL Nova Scotians, and detrimentally affect the small rural communities economically, culturally, and socially. When will the Premier and the government of NS stand up and explain to all Nova Scotians, why they are doing this?
The PDTT should be abolished, not increased to 10%. It is time for all of us Nova Scotians to stand up to yet another government decision, coupled with the closing of Communications NS.
While we appreciate the recent reversal decision on the Auditor General, the 10% PDTT needs to also be reversed and quickly before word spreads to other provinces. A majority government does not give the government the right to make unilateral decisions, without merit, facts or oversight, as this is above all, a democracy.
Thank you for reading this and please let others know about this egregious policy so we can get the government to listen!
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