HRM council approves new tax system for commercial properties

Halifax regional council has approved a new tax system for commercial properties. 

A new report with three options for tax reform was presented to councillors on Tuesday, but only two of them were considered.

The one recommended by finance officials is a tiered system that would reduce taxes for properties valued at less than $5 million, but increase them for those worth more $5 million.

The heads of three business districts made presentations to council. None of them was in favour of the tiered system.

"This completely goes against the goal that I hope we all share of making downtown more competitive and helping downtown recover from being disproportionately hit by pandemic restrictions," said Paul MacKinnon, executive director of the Downtown Halifax Business Commission.

The other option involves the creation of five tax zones. It means small- to medium-sized businesses in business districts and on main streets would pay less, while stores in retail and industrial parks would pay more.

14-3 in favour of tax zone

"Treating the exact same businesses differently doesn't seem to be fair," said Ann Louise MacKinnon of Centre Court Property Management, the managers of Dartmouth Crossing.

But those arguments did not sway the majority of councillors.

"Costco revenue was up 18 per cent in 2021 relative to 2020, I don't feel bad for them," said Coun. Shawn Cleary.

The vote was 14 to three in favour of the tax zone option.

"It's a tough call. I wish there was a way that we could make everybody happy, but that's not our business … The business of politics is trying to help those who need the help the most," said Mayor Mike Savage.

The new system will be implemented in time for the 2023-24 tax season. It will be reviewed after it's been in place for a year.

"There is the risk of unintended consequences. We have not run systems like this before," said finance manager Bruce Fisher.

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