CAP necessary to protect homeowners
Members of the Cape Breton Regional Municipality (CBRM) council in the last two years have, along with CBRM’s Chief Administrative Officer Marie Walsh and Deputy Chief Administrative Officer John MacKinnon, been touting the virtues of removing the CAP from property assessments.
In my opinion, it is nothing short of a tax grab for the CBRM, the provincial government and big business.
The CAP became a solution to the escalating rise in property assessments — values which were rising due to the sale of properties to foreign investors and, to a lesser degree, local entrepreneurs for absurd prices.
This threatened to force homeowners who could not afford to remain in their homes to sell their homes and end up in a governmentassisted home. This, after living in their home for decades. This has happened to many homeowners on fixed income.
Newcomers have expressed concern about being penalized by the CAP when buying or renting a new home. This, to a great extent, is not caused by the CAP. It is the fault of the government for not stipulating that selling homeowners be obliged to explain to new homeowners that they will be paying tax on the assessed value of the property.
It appears that the Property Valuation Services Corporation’s (PVSC) primary function is to make money for the government. It removes the government from the responsibility of creating fair taxation policy that not only benefits the ultra-rich, but also benefits the population at the lower rungs of the economic ladder. I believe that it is for this specific reason that property assessments are arranged in two areas: market values and the CAP.
Some, but not all, homeowners look at their home’s market value and are happy. It is anywhere from 30 per cent to 100 per cent more than the CAP. This gives them a false impression that a homebuyer will buy the property at the inflated assessment.
This is also why some new homeowners are thunderstruck by the fact that they were not advised by the previous owner that the CAP is reset upon purchase and they must pay taxes on the assessed market value of the property.
Government must implement a fair tax system that protects new homeowners and property buyers, citizens on fixed income and citizens on the lower rungs of the economic ladder.
Check out the businesses in favour of removing the CAP. They are complaining about the CAP because it works against them.
Contractors are complaining to the CBRM and other municipalities they can no longer afford to build duplexes because of the CAP. Whoop-de-do. Blame building supply companies et al for raising the prices of their supplies so that contractors can’t build an affordable home that ordinary people can afford.
I believe that because we live in a “democratic society” governments should provide an option for homeowners and business owners to either remain on the CAP system or opt out. Only time will tell as each year goes by which option benefits them. Barring government’s manipulation of the cost of living rate and realtors manipulating market values, I’m opting for the CAP system, but with a few added stipulations already mentioned in this letter.
I could go on picking out the problems if the CAP is removed. I hope there are more like-minded citizens who perceive this issue as I do, hoping that the next election will produce a government whose platform will introduce a fair and equitable tax system with no loop holes for all Nova Scotians.