Tax on Empty Homes and Lots

Summary#

• This bill lets Nova Scotia towns, cities, and Halifax create a new tax on empty homes and empty residential land.

• The goal is to speed up housing construction where city services exist and to raise money for affordable housing.

• Allows municipal councils to pass a bylaw for a “vacant residential unit or land tax.”

• The tax would be charged on the assessed value (the value set for property tax) of empty homes or land zoned for homes.

• Any bylaw must set the tax rate, define what “vacant” means, list any exemptions, and spell out audit, inspection, and appeal steps.

• Money raised must be used to improve access to affordable housing.

• Applies across Nova Scotia, including Halifax, but only where a municipality chooses to pass such a bylaw.

What it means for you#

• Property owners

  • If you own an empty home or empty residential-zoned lot in a municipality that passes this bylaw, you could face an extra tax based on the property’s assessed value.
  • What counts as “vacant,” any exemptions, and the tax rate will be set locally in each bylaw.
  • You could be audited or inspected to confirm vacancy status, and there will be a way to dispute a tax bill.

• Homeowners and landlords with occupied properties

  • If your home is lived in or rented, you would not be the target of this tax. Details depend on how your municipality defines “vacant.”

• Renters and people looking for housing

  • The tax is meant to push more homes onto the market faster and to fund affordable housing programs.
  • More funds may become available for affordable housing in places that adopt the tax.

• Developers and builders

  • There may be more pressure to build homes on serviced land (areas with water, sewer, and other municipal services) rather than hold sites empty.
  • Local rules and exemptions will matter for projects facing delays.

• Municipalities

  • You gain a new tool to address empty homes and land and to raise dedicated funds for affordable housing.
  • You must define vacancy, set a rate, set exemptions, and create audit and appeal processes if you adopt the tax.

Expenses#

No publicly available information.

Proponents' View#

• Will discourage leaving homes and residential land empty and push owners to sell, rent, or build.
• Creates a steady, dedicated stream of money for affordable housing.
• Focuses growth in areas that already have water, sewer, and roads, making better use of existing services.
• Gives local governments clear authority and flexibility to set fair rules and an appeal path.

Opponents' View#

• Could affect owners whose homes or land are empty for reasons beyond their control, depending on how “vacant” is defined.
• May be costly and difficult to enforce, with a risk of mistakes about who is truly vacant.
• Could discourage small landowners or add uncertainty to development, especially if permits or utilities are delayed.
• May lead to disputes over audits, inspections, or the fairness of exemptions.