The Canadian Taxpayers Federation (CTF) is challenging municipalities in Nova Scotia to reduce their tax rates and end the “double teaming” to protect taxpayers from higher taxes as a result of assessment increases announced today by the Property Valuation Services Corporation (PVSC).

“If Nova Scotia’s cities and towns want more money out of our pockets, they should have to stand up and vote for a tax rate increase instead of standing by quietly while revenues rise based on ever increasing assessments,” said Kevin Lacey, Atlantic Director for the Canadian Taxpayers Federation.

The CTF points out that as a result assessment increases, if you live in Halifax, own a $250,000 home and pay an urban tax rate, your taxes will go up by XX. This assumes that the municipal governments do not adjust their tax rates.

At the same time, many municipalities have had big increases in spending. In the last five years, we saw spending go up by 17% in Halifax (Reference: 2008 & 2013), and 22% (Reference: 2008 and 2013) in the Cape Breton Regional Municipality.

The CTF is calling on Nova Scotia municipalities to make three changes to protect taxpayers:

• Reduce tax rates: councils should adjust the tax rates to soften the blow of increased assessments.

• End the double-teaming: municipal governments control both the tax rates and assessments.  A board of directors made up of almost entirely municipal politicians and government officials (only one member comes from outside government) control PVSC, who perform the property evaluations. Municipal government should not be allowed to control both assessments and tax rates. The PVSC board should be made up of regular Nova Scotians, not just government.

• Relief for commercial assessment spikes: an HRM finance and budget committee has made recommendations to deal with spikes including a new small business tax rate and allowing taxes to be based on average assessed values.

“It’s time to end the double teaming. Right now taxpayers are faced with municipal governments on both sides of the taxation table, they both set the rates and they control the assessments,” continued Lacey. “Taxpayers don’t have a chance.” 

According to a NS Department of Finance report, Nova Scotians pay the highest federal, provincial and municipal combined taxes in all of Canada relative to its economy. (Reference: HERE p. 85)

“We’re only two weeks into 2013 and already taxpayers are paying more for power, more for water if you live in HRM, more provincial taxes and now, more municipal taxes. Taxpayers have had enough and it’s time to cut them a break,” concluded Lacey.