Nova Scotia Federation of Municipalities

WHEREAS the CAP program distorts the property tax system; and

WHEREAS it is not clear the homeowners most in need of property tax relief are the ones benefitting from the CAP program; and

WHEREAS municipalities are willing to offer pilot programs that will continue to meet the original objectives of the CAP program though a different approach; and

WHEREAS pilot programs can be evaluated to determine intended and unintended impacts of changes; and

WHEREAS a study on Municipal Property Taxation in Nova Scotia, by academic experts Harry Kitchen and Enid Slack recommended a phase-out of the CAP program;

THEREFORE BE IT RESOLVED the Province work with municipalities and other stakeholders to phase out the CAP program and provide better alternatives to protect low-income homeowners and those experiencing significant increases in residential property assessments; and

FURTHER BE IT RESOLVED that the Province enable pilot projects to be undertaken as soon as possible.

View the full text of the resolution

Further Information and Current Progress:

On January 29, 2020, NSFM's proposal to phase out the CAP was introduced to an All-Party Committee . The committee, chaired by NSFM President Pam Mood, includes Keith Irving (Liberal MLA), Tim Houston (Conservative Leader) and Gary Burrill (NDP Leader), along with Department of Municipal Affairs critics Elizabeth Smith-McCrossin (Conservative) and Lisa Roberts (NDP).

In December, 2020, NSFM launched the CAP Map Interactive Tool, designed to help familiarize ratepayers with the effects of the CAP on tax rates. It also features an in-depth analysis of the CAP by MountainMath Software and Analytics, the developers of the tool. 

Since the release of the CAP Map tool, attempts to reconvene the Committee have stalled, despite pressure from NSFM to continue movement on the issue. 

For further reading on the Capped Assessment Program, please visit the CAP Archive

WHEREAS municipalities have been abiding by the Solid Waste-Resource Management Regulations since 1995; and

WHEREAS these regulations hold municipalities solely accountable for proper separation of blue bag materials; and

WHEREAS municipalities must manage the risk of rising costs and fluctuating commodity markets for blue bag materials; and

WHEREAS municipalities’ residential blue-bag recycling programs cost over $25 million per year and are paid for primarily by municipal taxpayers; and

WHEREAS 80% of Canadian consumers live in areas where producers fund PPP programs by incorporating program costs into their national product pricing; and

WHEREAS Nova Scotia consumers are already paying the national product prices that support PPP programs in other provinces, but receive none of the benefits because Nova Scotia has no EPR program; and

WHEREAS the NSFM has developed a proposed model for EPR for PPP in cooperation with municipalities; and WHEREAS EPR for PPP would significantly decrease both costs and risks associated with municipal curbside recycling programs;

THEREFORE BE IT RESOLVED that NSFM request the Province develop legislation and regulations, in support of a full EPR for PPP model as proposed by NSFM in consultation with municipalities and other stakeholders; and

FURTHER BE IT RESOLVED that the Province will provide a transition program to assist those municipalities who are left with redundant facilities.

Read the full resolution on EPR

WHEREAS Towns are responsible for the cost of maintenance and capital improvements with respect to all roads within their municipal boundaries, including roads of joint benefit to the Province and towns, such as arterial and collector roads, for which the Province does not share costs; and

WHEREAS Rural municipalities make financial contributions to the Province for the maintenance of J-Class roads, and there is insufficient provincial funding to maintain these roads; and

WHEREAS a strong road network is essential to the Province and its residents for economic, social, educational, and health reasons, and increased investment in roads is required;

THEREFORE BE IT RESOLVED the Province provide equitable funding to Towns and Municipalities containing former towns for shared arterial and collector roads in the 2019 Budget or before; and

FURTHER BE IT RESOLVED the Province increase its transportation budget for JClass roads in the 2019 Budget or before; and

FURTHER BE IT RESOLVED the Joint Provincial-Municipal Committee on Roads develop a proposed new funding agreement and plan by the end of June 2019.\

Read the full resolution on Roads

WHEREAS municipalities recognize opportunities to accomplish more together and are willing to find new ways of collaborating; and

WHEREAS individual municipalities are often limited in resources to appropriately pursue these opportunities; and

WHEREAS there may be numerous barriers that hinder collaboration; and

WHEREAS all municipalities will benefit from lessons learned in collaborative efforts;

THEREFORE BE IT RESOLVED that the Province provide human, material, and financial resources in the 2019 budget or before, to those municipalities willing to collaborate, based on the specific needs of those requesting assistance.

Read the full resolution on Municipal Modernization

WHEREAS operational costs continue to rise due to factors beyond municipal control, and provincial financial support has not kept pace; and

WHEREAS one in five property tax dollars collected by municipalities are transferred to the Province;

WHEREAS the legalization of cannabis is creating a new revenue source for both the federal and provincial governments, yet municipalities are incurring a significant portion of the associated costs

THEREFORE BE IT RESOLVED that the Province freeze mandatory education payments for each municipality at 2017 levels; and

FURTHER BE IT RESOLVED that the Province increase its annual funding for the municipal equalization program by $20 million over three years, beginning in 2019; and

FURTHER BE IT RESOLVED that the Province of Nova Scotia cost share 50/50 in all municipal projects required to comply with the Accessibility Act, if those projects do not receive other funding, beginning in 2019; and

FURTHER BE IT RESOLVED that the Province provide municipalities with a substantial share of all the related tax revenues being generated through the sale of cannabis.

Read the full resolution on Municipal Funding