Halifax businesses with properties destroyed by fire ask for tax relief

Business owners who lost buildings in the Halifax-area wildfire, and local politicians, are calling on the province for tax relief — but the Nova Scotia government says the city can make that move on its own.

Halifax Regional Municipality (HRM) property tax bills are due this October, and while the city has already waived them for residential property owners whose homes were destroyed by fire, it has not done so for commercial customers.

"I actually couldn't believe they were charging us tax on something that doesn't exist. I mean, it doesn't make any sense," said Tammy MacKay, co-owner of Moulding Warehouse in Hammonds Plains.

MacKay's company lost their production facility during the wildfire that began in the area on May 28. It was one of the more than 200 structures destroyed during the blaze, including 151 homes.

They are working through the insurance process, but MacKay said it will likely cost millions of dollars to replace their machinery and rebuild. In the meantime, MacKay said they still have one warehouse and have set up a trailer to sell moulding from other suppliers.

But their upcoming property tax bill for the year is about $9,000, and comes at a time when "we're already stretched to the max," MacKay said.

A few kilometres away in Westwood Hills where the fire began, Donna Buckland looks over an empty, rocky slope on Wyndham Drive where the Giant Steps Children's Centre once sat.

The daycare co-owner said it was "devastating" to learn the building, built in 2008, was lost in the fire. Buckland said they've found places for all 68 children who attended the daycare either at their three other locations or in a rental space.

Her property tax bill will run $8,500 this fall, Buckland said, half of the $17,000 annual total. Although that number could go down next year after the land is reassessed, Buckland said it should be very low.

"We don't have a business to operate," Buckland said.

"If you look around, like we [have] pavement, gravel and a playground that's not usable. It's just to me, you know, what am I paying for?"

Area MLA Ben Jessome said it's up to the provincial government to step in. 

He wrote Premier Tim Houston in July to ask for a commercial tax relief program similar to the one the province rolled out in 2020 to help hotel owners during the COVID-19 pandemic.

In his letter, the Liberal MLA noted that the Halifax Charter prevents the municipality from making this move on their own. The charter reads that "the municipality may not grant a tax concession or other form of direct financial assistance to a business or industry."

"The government can't be all things to all people, but we need to be there for them when they need the most help, and when they suffer situations like this that were unexpected," Jessome said in an interview.

Jessome also said he'd like to see the province change the legislation so Halifax could take this step on their own in the future. 

The province did offer a grant of $2,500 to small businesses affected by the fires in Halifax and Shelburne County. Giant Steps qualified, but Moulding Warehouse did not.

Coun. Pam Lovelace, who represents the area, agreed property taxes should be waived or some tax relief given for destroyed businesses — but said the solution should be much broader.

She said a way to help businesses affected by the fires and recent flooding across Nova Scotia would be to make natural disasters eligible for property tax relief under the provincial Assessment Act.

"When we have issues that impact more than one community, we should broaden it out and create an equitable resolution for all," Lovelace said.

Province says Halifax can make 'its own decisions' on legislation

Municipal Affairs Minister John Lohr responded to Jessome's letter on Aug.17, writing that his department was working with Halifax "to explore legislative solutions to potentially enable greater supports for those impacted by the wildfires."

But when CBC News asked about the issue last Friday, a spokesperson for the department said something very different.

"It is the department's position that HRM has the ability to grant property tax waiver to the affected business without the province's involvement," wrote Krista Higdon.

When asked what the province based this on, given the strict language in the Halifax Charter, Higdon said "HRM makes its own decisions on how to interpret the HRM Charter provisions."

City says issue could come before council

It's unclear what Halifax's next move will be.

On Monday, municipal spokesperson Laura Wright said the city has asked the province to "provide us with clarification on their statement" because HRM's intent is to make sure it is following the Charter.

"From a process perspective, the municipality would need to seek direction from regional council and amend an administrative order related to tax relief for properties destroyed by fire," Wright said in an email.

Because the tax bills are due at the end of October, Wright said "there is time to work through this issue."