Halifax council calls for review of property assessment cap

Halifax regional council is asking the Nova Scotia government to take another look at how it caps property assessments.

On Tuesday, council agreed to send aletter to the provincial Minister of Municipal Relations and cabinet asking for a review.

The cap was introduced in 2005to limitunpredictable spikes in assessments, particularly with waterfront properties. Annual increases are now limited to the consumer price index.

Property tax is now calculatedby multiplying the assessed value of a propertyby the municipal tax rate.

Cap doesn't apply to renovations

But the cap does not immediately cover new constructionand apartment buildings are not included. The cap is alsolifted when homes are bought or sold or if there havebeenrenovations.

"I support removing the cap," said Coun. Waye Mason."The distortions in the market aren't fair."

"People like the cap's predictability," said Bruce Fisher, the municipality's manager of financial policy and planning. "But that's short-term in nature and gives people a falsesense of security."

Fisher believes the capped assessment system is havingan adverse effect on the economy not just in Halifax, butacross Nova Scotia.He said it discourages people from building new housing or doing renovations.

Province controls cap

But it's up to the province to either eliminate the cap ormake any changes.

Coun. Russell Walker thinksprovincial politicians are now ready to review the system.

"There is talk of a three-party committee on the cap,because all three parties know there is a problem," saidWalker.

Walker believes the cap should be phased out over sevenyears.