03/06/2025
I don’t normally post these things, but here is some food for thought. 📫 This impacts all Nova Scotians.
“Morning everyone - I am not normally posting in this group but after reading the article in ALL NS this morning by the Minister of Finance in regards to the increase to the Provincial Deed Transfer Tax (PDTT) to 10%, I want to ensure that every Realtor has the issues close at hand.
I have been very vocal about this important issue, emailing every Mayor and MLA in NS, as well as the Premier and Minister Lohr multiple times, and was on CBC Morning live this week but with everything else going on, I cannot get this picked up by mainstream press, so Nova Scotians understand the impacts of this tax!
I apologize in advance for this lengthy post but I wanted to be sure that all of the "arguments" against this policy are well explained. We each have to speak out about the PDTT increase slipped into the latest budget. Send a letter to your MLA, to the Premier, to the press. NSAR provided an easy way to do this in their newsletter yesterday morning. This has nothing to do with providing affordable housing, and will harm all of our communities, especially those in rural areas.
The increase of the Provincial Deed Transfer Tax (PDTT) is a Tariff against our fellow Canadians and is egregious and needs to be dealt with as soon as possible. This change was slid into the budget without consultation.
The PDTT should be cancelled for Canadians as we are the only province doing this against our fellow Canadians at a time when we should be opening our borders to interprovincial trade, which should include trade in real estate.
For foreigners - the PDTT should be reduced to 2.5% like other provinces (Ontario and Quebec). NS has long been home to many foreigners from the time our history began, and they give back to these communities in such far-reaching ways and often have generational ties to NS.
As you will see when you review the below arguments, this is not a matter of politics or real estate; this is an economic matter which will harm not just rural NS but urban centres as well.
The PDTT does not provide affordable housing as these seasonal owners are buying cottages, and other properties in remote areas that our NS buyers are not looking for. This will only further hurt the economies of NS communities and sends a message to our fellow Canadians (many with roots in NS) and our European partners that they are not welcome.
At a time when we are trying to remove inter-provincial trade barriers, this is counterintuitive and so harmful not just to the rural economies, but to our secondary institutions, charity organizations, affordable housing development, small business owners and to our reputation as an open province. All of this having been done without evidence as to why, no statistical facts and from a fiscal perspective, will likely reduce the amount that the PDTT brings in from the 11.5 million in the past year to a much lesser amount.
Please review the multiple reasons below why the government needs to cancel the PDTT for Canadians and reduce it to 2.5% for foreigners as other provinces do.
NS is placing a Tariff on our Fellow Canadians - First and foremost, we are the ONLY province taxing our fellow Canadians who wish to buy seasonal real estate, at a time when the Premier is opening the border to trade?
NS is placing an exorbitant Tariff on Europeans and other Foreigners - These folks who support our rural communities, and who are a huge part of our heritage, many of whom have significant ties to NS and the communities they support. If we must levy a tax on them, let it be commensurate with other provinces at 2.5% NOT 10%.
Economic Ramifications to Rural NS - Whether it is from the revenue generated from the initial purchase of land and housing, the devastation to rural economies is far-reaching and moves into every sector of rural NS harming municipalities who collect taxes and businesses as these owners contribute to the local economies from restaurants, property improvements, grocery stores, (every facet of rural NS economies).
Our Reputation – This egregious taxation (tariff) simply sends the message that we are not “open for business” and is contrary to everything we stand for.
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, and other countries where they currently live and work. So this tax punishes Nova Scotians who may not, at present, live and work in Nova Scotia.
The PDTT does not open housing for Nova Scotians - This tax was meant to open more housing for Nova Scotians, but it does not. It is a money grab that has gone too far. These buyers are purchasing seasonal properties in rural NS communities, and not affordable housing.
Post-secondary Institutions - Many parents must purchase housing (due to lack of rentals) for their children to come to NS and take their post-secondary education. This happens both inside HRM and in rural NS. This 10% PDTT will turn those students (and parents) to other provinces, reducing attendance and tuition at our post-secondary institutions.
Seasonal Owners Pay Higher Taxes - Let's not forget that these seasonal residents pay a higher tax rate already, (no cap on assessment) yet they do not use schools, local infrastructure and many other services like healthcare. Yet, their tax dollars benefit Nova Scotians.
Charity - Many of these "seasonal residents" (whether Canadian or out of country) are active members in their communities and very generous with local charities that need help. Not only do they donate their time and energy, but they also generously give to the communities they belong to.
Tourism - This 10% PDTT will harm tourism directly, as individuals will not want to invest their tourism dollars in a province that shuts its housing borders. Moreover, when word gets out that NS has closed its borders, there will be fewer folks coming to experience our province just on principle.
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. Our history and our heritage have been one of welcoming our Canadian neighbours and foreigners in.
Violation of the Canadian Charter of Rights - Isn’t this a violation of Charter 6 which should allow Canadians to move freely within our country, and not be discriminated against?
New Developments – On average,10-15% of new condo and new housing developments have purchasers/investors from other parts of Canada and abroad. These purchasers will stop investing in our projects with this additional tariff of 10%, putting these often-affordable housing projects in jeopardy and reducing affordable housing for Nova Scotians. This is a trade barrier that drives away capital investment in our province.
Existing Homeowners - The homes that the 10% PDTT targets are not typical NS homes, but seasonal properties located primarily in rural NS. This tax will now seriously harm those owners from selling their properties, so the people paying the price will often be Nova Scotian home sellers.
Transfer of Property Ownership – Many Nova Scotian seniors wish to transfer their properties to their children, and if they do not work in NS at present, they too are taxed 10%. These children are Nova Scotians and their rights are ignored.
PDTT Increase Will Provide Less than the 5% - The government is anticipating revenues of 26M versus 11.5M under the 5% tax previously levied, but these funds will not be realized. For a $250,000.00 seasonal home, that equates to $25,000.00 on top of the Municipality’s Deed Transfer Tax. Make no mistake, this will stop the movement of property.
The government needs to re-visit this egregious policy which will harm ALL Nova Scotians, and detrimentally affect the small rural communities economically, culturally, and socially.
The PDTT should be abolished for Canadians, not increased to 10%, and reduced to 2.5% for foreigners.
When word gets out and everyday Nova Scotians realize what effect this policy will have, not to mention our provincial counterparts, the damage to our beautiful province will be done and very difficult to reverse.
Thanks for your consideration.”
Well researched and written by Engel & Volkers Broker, Donna Harding.
