Landlord says oil tax another problem for rental housing supply
A Dartmouth landlord says the Nova Scotia housing market may suffer next year as climate tax enters the province and cuts the profitability of being a landlord.
In a previous media interview, landlord Mike Burgess said the supply of rental properties in Nova Scotia may be slashed when a new oil tax adds to the costs of running rental property in the province.
Next year on July 1st 2023, the federal government plans to expand its carbon tax program to Nova Scotia - adding a fee to the price of oil.
The move will impact 39 per cent of Nova Scotians, whose heat and hot water is powered by oil in their home, according to the Canadian Taxpayers Federation (CTF).
Affected households will see a monthly increase of $47 to heating costs, the CTF said.
Halifax landlords are heavily impacted by the tax, as they pay to heat entire buildings in some cases and have difficulty recouping the costs, Burgess said.
In a previous interview, he said he spent an additional $12,000 dollars heating a building this year compared to 2020.
Nova Scotia’s rent-cap prevents landlords from offsetting such increasing costs, and the situation is pushing rental stock out of the market, Burgess said.
The Investment Property Owners Association of Nova Scotia said in a previous interview that roughly 1-in-4 of the 45,000 rental units represented by its members were either for sale or at risk of being listed for sale.
The carbon tax will also add a fee to gasoline in Nova Scotia. The Canadian Taxpayers Federation said the tax will hike the cost of gas by 12 cents per litre.
The federal government will try to offset added costs with a quarterly program called the Climate Action Incentive payment, which it describes as a "tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing."
The program will make three $124 payments to adults in Nova Scotia between July 2023 and January 2024 - one in July, October, and January.
Canadians over the age of 19, who have lived with their child, or who have had a spouse or common law partner are eligible.
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