By Keith Doucette

Rising the tax would successfully add a “tariff” on Canadian patrons at a time when the nation is making an attempt to scale back inside commerce obstacles, says Suzanne Gravel, who will assume the presidency of the Nova Scotia Affiliation of Realtors on the finish of March.

The 2025-26 provincial finances would improve the tax to 10% from 5% as of April 1, with officers estimating the rise would elevate an extra $13 million.

“Nova Scotia has simply shut the door” on out-of-province patrons, Gravel mentioned in an interview Friday.

“In the event that they wish to purchase a cottage property … they’ll suppose twice about the place they’ll go, if not financially then merely on precept.”

Gravel mentioned the tax improve will drive potential patrons away and cut back funding, notably in rural areas.

She mentioned she is scheduled to look earlier than a listening to of the legislature’s public payments committee on Monday, the place she’s going to voice objections on behalf of the greater than 2,000 members of the affiliation.

Earlier this month, Finance Minister John Lohr mentioned the tax improve would give Nova Scotians a “slight benefit” once they bid for properties in opposition to out-of-province competitors at a time when reasonably priced housing is briefly provide.

However Donna Harding, with Engel & Volkers actual property company in Halifax, takes subject with the minister’s assertion.

Harding mentioned nearly all of out-of-province patrons are buying seasonal cottage properties or camps located on numerous land. Many are Nova Scotians dwelling in different provinces who wish to purchase property to allow them to retire of their native province.

“They aren’t shopping for the Nova Scotia inventory of properties that first-time patrons wish to purchase,” she mentioned, including that the share improve would add $30,000 to the price of a $300,000 cottage. 

“Nobody can afford that,” mentioned Harding. “The minute that anybody in Canada realizes that Nova Scotia has positioned a tariff of 10 per cent … they aren’t going to come back.”

The deed switch tax applies to all residential properties, or to a portion of a property thought of residential with three dwelling items or much less. It additionally applies to residentially zoned vacant land.

Lars Osberg, an economics professor at Dalhousie College, mentioned deed transfers act as a “tax on a transaction.”

“It places a wedge between the worth the client pays and the worth the vendor will get,” mentioned Osberg. “It implies that patrons can pay extra and sellers will get much less.”

He known as the tax primarily a “rural phenomenon” that can do little to have an effect on housing shortages which are considerably extra pronounced in Halifax, including that it additionally spares giant property house owners on the expense of center class owners.

“It doesn’t contact in any respect the individuals who personal condo buildings and that’s the large cash,” Osberg mentioned. “It taxes small cash nevertheless it doesn’t tax huge cash.”

This report by The Canadian Press was first revealed March 14, 2025.

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Atlantic John Lohr Keith Doucette Nova Scotia Regional Suzanne Gravel The Canadian Press The Nova Scotia Association of Realtors transfer tax

Final modified: March 14, 2025