By Wendy Elliott
The Advertiser/NovanewsNow.com
Union of Nova Scotia Municipalities (UNSM) chairman Wolfville Deputy Mayor Bob Wrye was not thrilled when provincial property assessments came out with property caps.
“Our position is and always was that we are opposed to the CAP at the consumer price index and at any level without a means test,” Wrye said recently.
Wrye contends that for “many municipalities the CAP is imposing limits on our one source of revenue. Throughout the province the CAP will reduce the assessment by $3 billion. In the western region the impact is $366 million.”
Overall with the growth in new assessment and sales in the western region with the CAP assessments are up five per cent. “It is unfortunate that the government has chosen CPI, which is in no way reflective of municipal costs to use as it's CAP.”
Other than opposing this on the principle that the province ought not to interfere in our one revenue stream – one could imagine the howling if the federal government did the same to the province -- the UNSM chair says, we are opposed to it because of the unfairness it will produce within the system.
“First, over time, there will be a tremendous variance in who pays what amount of tax depending on how long you or your family have owned your house,” Wrye said.
New homeowner pays
“The new homebuyer will be paying tax at a market level while others pay for the same value of property at a capped level,” Wrye noted. “Imagine in five years time what a young couple will face. The whole concept that municipal government is financed based on the fair market value of your home will be changed.”
Secondly, Wrye said, there has to be a shift in the tax burden. “In viewing my own assessment increase and the capped level increase, at Wolfville's current rate I will pay approximately $510 less than I would have paid without the cap. That $510 will be paid by someone.”
He went on to suggest, “from what we can see it will be paid by those with lower value homes that have not been increasing, by apartment dwellers and by businesses whose assessments are not capped. Remember the town's budget and tax rate are not relevant. I will save money and someone else will pay it.”
Thirdly, Wrye said, there will be a shift in the tax burden between municipalities for shared services that are based on assessment. Communities that have been growing will pay less; those that are not will pay more.
UNSM has made these points a number of times at a number of different forums, he said. “We have not been listened to over the clamor that the CAP will provide tax relief. It will not. Municipalities still will need to spend the same amount of money.”
Changes who pays
The CAP will merely change who pays it. In our opinion, said Wrye, it will benefit those with higher value properties at the expense of those whose homes are of lower value. “There are those who will argue that councils will tighten their belts when faced with having to raise taxes. If they do you can bet that the infrastructure, arts, recreation and policing will all pay the price.”
The new legislation is limiting assessment hikes for almost 300,000 property owners in Nova Scotia. Service Nova Scotia and Municipal Relations reports that assessments for 278,338 properties were capped this year. Last year, the cap limit was 10 per cent, and 32,721 properties’ assessments were capped. This is the first year property owners did not have to apply to have their assessment capped. To be eligible for the cap, the property must be classed as residential or vacant resource property and be owned by a Nova Scotian.
Anyone wishing to appeal their assessments must have their assessment notice filled out and returned to the regional assessment office by midnight Feb. 11.
Notices of property assessments for most residential properties will include a personal identification number as well as an assessment account number. By entering the information on the assessment website,
www.nsassessment.ca, owners can look up assessment information about their property. Those without Internet access can call 1-800-667-5727 for more information.
