Wednesday, September 22, 2010


The Region of Queens Municipality Mayor says the Provincial CAP system is hurting the people its supposed to protect.

John Leefe says many of his constituents don't realize how harmful the taxation system is to the value of their homes and their savings in the bank.

"The people who capping was supposed to assist most is people on low incomes, which almost always is people who live in modest housing. Modest housing does not increase in value as much as rapidly as more upscale housing, yet it's upscale housing that tends to be capped," says Leefe.

Leefe says homeowners who want to maintain a cap on their homes are also reluctant to sell, and that's stunting the real estate market.

The municipality is recommending the CAP system be phased out and replaced with a series of low income exemptions and deferral programs.

The province says the system was introduced in 1995 to protect Nova Scotians from dramatic increases in market values.