Are condominiums taxed fairly ?

 

Recently, at the request of one of the executive of CONS we were able to obtain the tax assessments and estimated taxes payable to HRM of certain condominiums and apartments which were constructed adjacent to each other on a private road which does not receive any maintenance or snow clearing services from HRM.  This information was provided through the help of Councillor Debbie Hum.  The assessments and estimated taxes to be paid are shown below.

 

  # Residence type Assessed value Total est. taxes  
  1 Condominium $15,981,000 $205,554  
  2 Condominium $14,927,500 $194,460  
  3 Condominium  $18,548,200 $240,384   
  4 Apartments $6,451,200 $83,607  
  5 Apartments $6,899,200 $89,413  

 

Originally all five buildings were being built as condos; mostly six floors, with one building of four floors. All have very similar footprints.  Some time during construction the developer obviously decided that he would designate two of the buildings as apartment buildings, although the units were built to the same standards as the condominiums adjacent to them.

 

From the above it shows that the total Assessed Value of the two(2) apartment buildings is $13,350,400 or an average of $6,675,200 per building, whereas the total Assessed Value of the three(3) condominium buildings is $49,456,700, or an average of $16,485,566 per building----------or almost 2.5 times the assessed value of an apartment building.    

 

Total estimated taxes of the two(2) apartment buildings is $173,020 or an average of $86,510 per building, paid by the owner of the buildings.  Total estimated taxes of the three (3) condominium buildings is $640,398 or an average of $213,466 per building,  payable by the individual owners in the condo buildings ---------- again almost 2.5 times the amount paid by the owner of the apartment buildings

 

We feel that the above inequities shown above need to be addressed, as obviously there is a great discrepancy between the assessments of apartment blocks and condominiums.  In fact this discrepancy has been recognized and acknowledged in the Report of the Tax Reform Commission that has recently been presented to HRM Council.  The goal of C.O.N.S. will be that this issue continues to receive the attention it deserves and that the recommendations of the Tax Reform Commission Report are implemented.  Condo owners can assist us by becoming familiar with the Report and let their councilor know their views on it.