Halifax council calls for review of property assessment cap

Halifax regional council is asking the Nova Scotia government to take another look at how it caps property assessments. 

On Tuesday, council agreed to send a letter to the provincial Minister of Municipal Relations and cabinet asking for a review.

The cap was introduced in 2005 to limit unpredictable spikes in assessments, particularly with waterfront properties. Annual increases are now limited to the consumer price index.

Property tax is now calculated by multiplying the assessed value of a property by the municipal tax rate.

Cap doesn't apply to renovations

But the cap does not immediately cover new construction and apartment buildings are not included. The cap is also lifted when homes are bought or sold or if there have been renovations.  

"I support removing the cap," said Coun. Waye Mason. "The distortions in the market aren't fair." 

"People like the cap's predictability," said Bruce Fisher, the municipality's manager of financial policy and planning. "But that's short-term in nature and gives people a false sense of security."

Fisher believes the capped assessment system is having an adverse effect on the economy — not just in Halifax, but across Nova Scotia. He said it discourages people from building new housing or doing renovations. 

Province controls cap

But it's up to the province to either eliminate the cap or make any changes. 

Coun. Russell Walker thinks provincial politicians are now ready to review the system.

"There is talk of a three-party committee on the cap, because all three parties know there is a problem," said Walker.  

Walker believes the cap should be phased out over seven years.