ARICHAT: During Richmond County’s Committee of the Whole meeting on April 8, councillors reviewed recent amendments to Nova Scotia’s deed transfer tax and approved a motion to formally request changes to the updated provincial policy.
The deed transfer tax, which applies to non-residents purchasing residential properties with three or fewer dwellings, including vacant land in residential zones, was introduced in 2022 at a rate of five per cent.
An additional five per cent increase came into effect on April 1, 2025.
“So that change affects all of the purchase and sale agreements signed after March 31,” Councillor Amanda Mombourquette explained to her colleagues. “And any other transfers that happen after March 31, without an agreement and purchase sale.”
Mombourquette said several constituents have raised concerns about “potential negative impacts,” particularly the risk of reduced real estate investment in the region.
“Because non-residents will be less likely to invest here in Nova Scotia, potentially leading to slower market activity. They’ve discussed potential for stalling residential development because there will be higher upfront costs,” she noted. “So, potential buyers may choose not to invest, which sort of contradicts our goal of addressing the housing shortage.”
The councillor also highlighted concerns related to family property transfers, such as family homes and cottages. Under the new rules, family members must pay a 10 per cent transfer tax when transferring property to relatives who reside outside the province.
“Which many people were unaware of, and I think it sort of flies in the face of our desire to attract people back home and increase Nova Scotia’s population in general,” Mombourquette added.
Further feedback from residents included worries about broader economic implications, such as potential job losses and declining business for contractors, tradespeople, and suppliers.
In response, Mombourquette proposed that the municipality submit a letter to Premier Tim Houston outlining local concerns and urging reconsideration of certain aspects of the policy. Council’s request will ask the province to limit the tax to properties with existing dwellings, excluding undeveloped residential land. An amendment was also proposed to replace the term “out-of-province” with “out-of-country” for taxation purposes and to exempt family transactions.
“Because that specifically could potentially contradict our desire to create more housing here in the county,” she said.
Warden Lois Landry acknowledged the policy’s potential benefits, noting that one of the common concerns raised during her campaign was the affordability of real estate for local residents.
“So, take our tax sales for example, the part of the purpose of this is to give local people a chance to purchase property, houses and land at a slightly reduced rate,” Landry said.
The warden expressed her support for the additional five per cent tax on non-residents purchasing tax sale properties who do not intend to live in them for at least six months, arguing it could help level the playing field for local buyers.
“I personally think that the enhanced opportunity for local buyers at this point, where people have identified that they’re being priced out of the market is something that is important at this point,” Landry stated.
Despite one opposing vote, the motion was passed. A formal letter will be drafted and presented at the next regular council meeting, addressed to the premier, requesting specific changes to the deed transfer tax policy.