Halifax raises property tax exemption cap

Dartmouth dominates Tuesday’s council meeting

On Tuesday, May 13, Halifax’s city council met for a meeting filled with mostly regular stuff. There was some tinkering with property tax rules to make it a bit more equitable, Dartmouth may become the pickleball capital of the HRM, and the controversial sidewalk on a highway in Porter’s Lake met its timely five-year postponement.

First on the agenda, deferred by councillor Shawn Cleary in February, was a proposal to change the criteria for property tax exemption by raising the cap for qualifying properties from $300,000 to $500,000. The problem at issue, as staff explain in the report, is this:

The Low-Income Exemption Program has experienced a significant increase in recipients for homes purchased in the year or two preceding the application, with market values well in excess of the average property value for a single-family home in HRM. The current eligibility of household income alone does not consider those property owners who, for example, may be living on non-taxable savings, and their only reportable income is investment income. This has prompted significant analysis over the past number of years to ensure the program is being applied equitably to homeowners most in need.

Staff did a deep dive into possible ways to make the program more equitable. In that deep dive, they found 10 properties worth over $1 million with household incomes of less than $32,000. Staff also found 26 homes purchased since 2020 for $425,000 to $500,000 by people with a reported annual income as low as $1.00, but who also seem to have current (aka being paid for) half-million-dollar mortgages with this $1.00 annual income.

Staff recommended against the $500,000 cap, suggesting a cap of $425,000, because it saves the city more money. If people's property is above the cap, other ways exist to qualify for this program, like being on a Guaranteed Income Supplement or receiving a disability payment. Councillors were not thrilled by this solution, but were at least content that they were doing the best they could for the people in this city who need it the most with their limited tools.

For more details on this meeting and a deep dive into the Porter’s Lake sidewalk report, you’ll have to get past this paywall. So long for now, free subscribers.