Transfer tax decision delayed

BY JENNIFER HOEGG

jhoegg@kentvilleadvertiser.ca

NovaNewsNow.com

Kentville’s contentious deed transfer tax bylaw decision has been delayed again.

At a special meeting June 16, town council chose to postpone a vote on the proposed 1.5 per cent tax on property purchases.

Mayor David Corkum said in a June 17 interview that more time is needed to allow “opportunity for the general public to have a little more information so they can pass on their wishes to their council members.”

Councillors plan to consult residents, through a public meeting or survey, on what council should do to balance its budget: implement the deed transfer tax, raise general tax rates or cut services. “Council has decided they would like to get more information in the public’s hands as to not only the deed transfer tax (but the alternative of) between four and six cents added to the tax rate if there is no deed transfer tax,” Corkum added.

Service cuts may be a possibility, he said. “Unless we have a tax increase or a deed transfer tax or a combination of both, the only opportunity (to save) is to cut services and people. “We’ll look to see if there are any further savings. At this point we have sent the staff back several times. We have been working on this budget for a few months.”

Young resident says ‘no’

Colby Clarke would not have purchased his Kentville property last September if the town had a deed transfer tax. Clarke spoke in opposition to the bylaw at a June 15 public meeting. “I had a very hard time getting the money together to buy a house,” the 27-year-old said in an interview. “I would be a prime example of someone who wouldn’t have the ability to be a homeowner in this town.”

Clarke considers a deed transfer tax an unfair burden on first-time and low-income homebuyers “because it penalizes one group of people” to pay for services for everyone.

A general tax increase is better, in his opinion. “Nobody likes to see increased taxes, but the price of services go up so we have to raise taxes to preserve services.”

One of lowest tax rates: Corkum

Kentville is a good buy either way for homeowners, the mayor said. “Unfortunately, most people are not aware that Kentville enjoys one of the lowest tax rates of any town in Nova Scotia.”

The 2008-2009 annual rate was approximately 1.23 per cent of assessment value for residential and 3.02 per cent for commercial properties.

Kentville’s tax rate is usually set by the end of June, but waiting for public feedback on the deed transfer tax issue will delay the process, Corkum noted. “I don’t think we want to be in September here setting tax rates. I think it will be in the July, August area before it’s done.”

Council will reconsider the proposed deed transfer bylaw July 15 at 7 p.m.