A pair of for-sale signs on St. Margaret’s Bay Road on Tuesday. Photo by Ryan Taplin /The Chronicle HeraldArticle contentIs it a reasonable way to bring in more cash for the municipality or an incentive for people not to list their homes?THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentOn Tuesday, Halifax councillors and the mayor debated a strategy for increasing the deed transfer tax – that’s the money the municipality gets when a property changes hands – and tiering it instead of using the flat rate it has now.Article contentArticle contentThe move would bring in at least an extra $25 million a year for the municipality to pay for expensive capital projects. With tiers, homebuyers with more money would pay more, and it would be cheaper for average home buyers than what they’re paying now, promised Halifax staff. A luxury surtax for mansions that sell for over $2 million is also a part of the strategy.Article contentArticle content“No one likes to pay more, but we are in some fiscal challenges and we have to think creatively about places we can go,” said Coun. Sam Austin (Dartmouth Centre) during Halifax regional council meeting on Tuesday.Article content“We do not have enough money to do everything that is on our plate.”Article contentHe said what staff have come up with is a very reasonable proposal.Article content A pair of for-sale signs on St. Margaret’s Bay Road on Tuesday. Photo by Ryan Taplin /The Chronicle HeraldArticle contentThe municipality depends heavily on the deed transfer tax (DTT). CFO Jerry Blackwood explained that it offsets the property tax rate.Article contentIn 2024, HRM collected $68 million from 6,647 real estate transactions involving 7,241 properties. There were another 2,649 transactions that are exempt under the current provincial legislation (these are situations like transfers between spouses or affiliated corporations).Article contentHow it works now vs. the new strategyArticle contentRight now, the DTT is a 1.5 per cent flat rate and staff say it’s outdated. The province is also unique across the country because it imposes an extra provincial 10 per cent deed tax for out-of-province buyers.Article contentArticle contentBy creating four tiers of DTT, staff said it would save the average homebuyer $1,000. The tiers would have a DTT between one and 2.5 per cent at intervals of $200,000, $500,000, $800,000 and over $800,000.Article contentSomeone buying a single-family home right now in HRM for an average of $472,538 would pay $7,088 in DTT.Article contentBut under the proposed tiered system, that same homebuyer would pay $6,088.Article content“All property purchases below $700k would pay less under the proposed changes when compared to the current policy,” wrote staff in their report.Article contentMayor Andy Fillmore said that $700,000 cut off doesn’t make sense. A house going for $700,000 is a townhouse, homes for an average family, not mansions, he said.Article contentHe said he’s keenly focused on affordability and housing, and part of that is creating churn in the marketplace.Article content“What data tells us is that when deed transfer taxes go up, at any price, it causes what could be called a locking in of the market. People tend not to list their homes because they’ll get nailed by a deed transfer tax when they move into the next place,” he said, adding that people who might move on and leave a more affordable home won’t do that.
Halifax aims to boost and change deed transfer taxes on property sales
