New wealth tax complicating retirement plans of NS seasonal residents

Some individuals who dwell in Nova Scotia seasonally say they’re contemplating promoting their properties within the province due to a brand new property tax.

non-resident property tax included Within the Progressive Conservatives’ provincial finances launched final week. It fees $2 per $100 of the appraised worth for “non-resident” householders — who primarily dwell elsewhere — and it took impact Friday.

The tax is billed as a measure to enhance housing availability in Nova Scotia, and PC hopes it should assist fund applications to answer the urgent wants of the province’s rising inhabitants, together with well being care and schooling. will generate $65.5 million in income for

Vivian Lyons, who hails from Virginia, expects her property tax invoice to triple this 12 months, totaling an estimated $27,000. She and her husband have a house in Kingsburg, on the South Shore of Nova Scotia, the place they dwell for about six months every year.

Leon referred to as the brand new tax forfeiture, saying he doubted it will remedy the issue it was designed to repair. She mentioned that about half of her neighbors in Kingsburg are seasonal residents.

“Actual property is only a provide and demand sport and provide in Nova Scotia is solely not assembly demand,” mentioned Lyons, who was a realtor for 30 years. “Taxing individuals in rural areas won’t encourage building in city areas.”

10:00Response to new guidelines efficient for out-of-province Nova Scotia property house owners

Non-residents who personal property in Nova Scotia will now must pay increased property taxes and deed switch taxes. Hear suggestions from an HRM actual property agent and an Ontario resident who owns a cottage in Chester.

The provincial authorities mentioned there are about 27,000 properties within the province owned by non-residents.

A spokeswoman for the Division of Finance mentioned there’s a housing scarcity in Nova Scotia and non-resident-owned residential properties are discovered all through the province.

Vivian Lyon and her husband, Stephen Lyon, pose for a photograph with their granddaughter at their property in Kingsburg, NS, the place they’ve been dwelling seasonally since 2017. The couple got here to Nova Scotia on trip in 2003 and knew ‘inside hours’. That was the place he needed to retire. A number of days later, he purchased the land the place he would construct his house in 2008. (Submitted by Vivian Lyon)

Bob Camozzi, who owns a house in Cape George in Antigonish County, mentioned the uncapped property evaluation, which successfully leads to a premium on property for non-residents, is already serving to to steadiness the market in rural areas. Works nicely for.

“Individuals won’t ever be pleased with a surcharge or tax,” mentioned Camozzi, who lives in Oshawa, Ont., however often lives in Nova Scotia from Might to October. “However we pay them as a result of we all know they’re important for native companies that profit our neighbors and our mates.”

Like Lyons, Camozzi expects his tax invoice to triple to about $12,000. He mentioned he understands the federal government wants income however the choice to lift taxes on seasonal residents will flip individuals away.

neighborhood relations

Seasonal residents at Cape George have sturdy ties to the neighborhood and make a giant contribution to the local people by volunteering and supporting native companies, he added.

“I might say 55 to 60 % of non-residents who have been truly born and raised in Antigonish County,” Camozzi mentioned.

“It is not like an ultra-rich neighborhood the place you simply purchase these locations and go a few times a 12 months. It is the individuals who come and spend a whole lot of time.”

Bob Camozzi and his spouse, Michelle Mero, pose for a photograph at their property in Cape George, NS, the place they often dwell from Might to October. Kaimoji mentioned land administration is a crucial a part of his life within the coastal neighborhood. (Submitted by Bob Camozzi)

Camozzi mentioned promoting his property could be a “final resort” as he and his spouse have talked about in the future dwelling there completely and ultimately passing it on to their youngsters.

Nicola Hubbard mentioned she and her husband are contemplating promoting their house in Chester. She expects a further $18,000 on her tax invoice this 12 months.

“It was our intention to spend a very good portion of each retirement 12 months [there], to depart it to our daughter who thought, ‘Oh, I will get married there. It might be a wonderful place,” Hubbard mentioned. “None of that appears doable now.”

Tourism, impression on native economies

Hubbard mentioned the brand new tax ignores the contribution made by seasonal residents to the neighborhood.

“When you could have individuals with you for months, you are already accumulating a whole lot of HST,” mentioned Hubbard, who grew up in Nova Scotia and now lives in Texas as a twin citizen.

He mentioned mates usually go to in the summertime months and he expects that if seasonal residents begin promoting their properties, it should have a big effect on tourism within the province.

“I’ve received three or 4 individuals from Texas who need to journey to Nova Scotia,” she mentioned. “Belief me, they are not coming to Nova Scotia if they cannot go to us.”

Hubbard mentioned he hopes the tax is amended to incorporate exemptions for Canadian residents to encourage individuals to not reduce ties with the province.

A finance division spokesperson mentioned non-residents are topic to a number of taxes and levies similar to motive gas tax and HST.

“When the invoice goes earlier than an modification to the legislation, individuals may have a chance to specific their considerations,” the spokesperson mentioned.

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