Queens argues CAP property assessments needed to protect against dramatic rise in house prices

COVID-19 has spurred home sales in Queens. Photo: Ed Halverson

The Region of Queens is looking to keep the property assessment CAP in place, for now.

Nova Scotia’s Capped Assessment Program is tied to the Consumer Price Index and limits how much property assessment can increase year over year.

The Nova Scotia Federation of Municipalities, the organization that lobbies the provincial government on behalf of their members, has been pushing to eliminate capped assessment on homeowner’s property taxes.

Region of Queens Mayor Darlene Norman says council wants the federation to put aside their efforts to eliminate the CAP program.

She is concerned lifting the CAP during the hot housing market will price people out of their homes.

“That program was designed to protect low-income people from losing their properties and paying excessive tax. When we look at properties that have quadrupled and ten-folded in their value, average-income people are going to need that CAP to save them thousands and thousands of dollars in increased tax,” said Norman.

Property tax is one of the only ways municipalities can raise money.

The tax is set as a percentage of a property’s assessed value, so the higher the property is assessed, the more money the municipality will receive.

By asking not to lift the CAP, the Region of Queens is actually receiving less money.

For Mayor Norman, the income is not as important as keeping people in their homes.

“It’s not about less money in our coffers, it’s about looking after the people who we represent,” said Norman.

President of the Nova Scotia Federation of Municipalities Emily Lutz says the CAP system has always disproportionately favoured higher income earners at the expense of those who make less.

Lutz says NSFM has proposed a phased approach to lifting the CAP, which would involve municipalities easing their tax rates.

However, Lutz says discussions around the CAP may become part of a larger conversation with the province.

She says the new provincial government is looking to overhaul their relationship with municipalities and that will include looking at how those units are funded.

“Our stance, at the current moment on CAP is that, we are sitting and waiting and seeing how discussions with the province around renegotiating the entire relationship between municipalities and the province goes because we are fairly sure it will be part of those discussions,” said Lutz.

In the meantime, Norman says the Region of Queens will be advocating keeping the CAP in place.

“Who would have ever assumed that everywhere in this province the increases in property assessments are going to be unrealistic. They’re going to be unheard of,” said Norman. “It’s just so important to keep that CAP, at least for now, to see where these land prices are going to go.”

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