Justice is free—of town taxes
Arbitrary provincial decision keeps courthouse off town tax books
Digby is one of nine municipalities in Nova Scotia that could benefit if the province can be convinced to pay property taxes.
The Union of Nova Scotia Municipalities says it is an issue it wants to address with the provincial government because it could bring well over $1 million into municipal coffers. UNSM president Robert Wrye estimates the potential tax revenue at about $1.6 million.
Digby wouldn’t get rich off its courthouse, however, since the assessed value last year of $230,200 would produce only $8,402 in taxes—or a grant in lieu of that, according to deputy clerk Matthew Raymond.
Still, because courthouses require the same municipal services as any other provincial building, Raymond wonders at the rationale of courthouses being let off free and clear.
“It’s just a matter of being consistent. How have they arbitrarily chosen that some properties will pay a grant in lieu and other properties will not? And I think that’s really the point there,” he said.
Most of the other provincial properties do pay the town, said Raymond. The tourist information bureau on Shore Road pays a grant in lieu, and the Maud Lewis Provincial Building on Warwick Street provides either grants in lieu and or business occupancy where appropriate.
“It’s all based on their assessed value at our regular tax rate, so grants in lieu work out to be the same amount as if they had been taxed,” he said.
“So the only two that stand out to me right now…are the school and the courthouse.”
The Digby Elementary School property would have brought in $121,892 in taxes, but instead the town pays over $300,000 to the school board. The high school is a different matter since it is built on land owned by the town.
Courthouse and schools do pay for both water and sewer services because the sewer rate is based on the water consumption rate, Raymond said.
There are 10 such court facilities in the province, with others under construction in Bridgewater and Yarmouth.
Other cities and towns that would benefit from having courthouses pay taxes or grants in lieu include Antigonish, Annapolis Royal, Pictou, Kentville and Halifax.
The UNSM plans to discuss the issue with the province, perhaps as early as June.
