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Non-resident Deed Transfer Tax Regulations
made under Section 27 of the
Non-resident Deed Transfer and Property Taxes Act
S.N.S. 2022, c. 4
O.I.C. 2023-48 (effective April 1, 2022), N.S. Reg. 41/2023
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Application for refund of deed transfer tax
Issue of refund by Administrator
Information required when exemption claimed or refund requested
Requirement to provide records
Use of information by Administrator
1 These regulations may be cited as the Non-resident Deed Transfer Tax Regulations.
2 In these regulations,
“Act” means the Non-resident Deed Transfer and Property Taxes Act;
“parcel” means a parcel as defined in the Land Registration Act.
3 The prescribed property tax rate for all residential property that is taxable property is $0.00 per $100 of assessed value.
4 The deed transfer tax does not apply if a deed or instrument transfers residential property in any of the following ways:
(a) to His Majesty the King in right of Canada or an agency of or corporation owned by His Majesty the King in right of Canada;
(b) from an individual to a trust of which the individual is the sole beneficiary if the trust is considered an alter ego trust as defined in subsection 248(1) of the Income Tax Act (Canada) or a trust having similar requirements if the individual is a non-resident of Canada;
(c) from an individual to a trust if the individual and their spouse or common-law partner are the only beneficiaries and the trust is considered a joint spousal or common-law partner trust as defined in subsection 248(1) of the Income Tax Act (Canada), or a trust having similar requirements if the individual is a non-resident of Canada;
(d) to or from a trust if there is no change in beneficial ownership of the residential property;
(e) from an executor to a spousal trust;
(f) to a child, grandchild, parent or sibling of the grantor if the deed is registered after the death of the grantor;
(g) to a mortgage insurer from a foreclosing mortgagee.
Application for refund of deed transfer tax
5 (1) A person may apply to the Administrator for a refund of the deed transfer tax in either of the following circumstances:
(a) extraordinary circumstances are present; or
(b) the tax or a portion of the tax was paid in error.
(2) An individual who paid the deed transfer tax in respect of a residential property and who becomes a resident of the Province within 6 months of the date they acquired the property may apply to the Administrator for a refund of the deed transfer tax.
(3) An individual who applies for a refund of the deed transfer tax under subsection (2) must provide proof of Nova Scotia residence to the Administrator.
(4) An application for a refund under subsection (1) or (2) must be made within 1 year of the date the person acquired the residential property.
(5) If the Administrator is satisfied that subsection (1) or (2) applies, the Administrator must refund the tax or a portion of the tax.
6 If the Minister changes an assessment or determination regarding the applicability of the deed transfer tax as a result of an appeal made under the Act, the Administrator must refund the tax or a portion of the tax in accordance with the Minister’s decision.
Issue of refund by Administrator
7 If a refund of tax is required under these regulations, the Administrator must issue the refund
(a) to the grantee or grantees in accordance with their ownership interest in the property; or
(b) if the grantees have consented to a designated grantee to represent all grantees in a transaction, to the designated grantee.
Information required when exemption claimed or refund requested
8 A grantee who requests a refund of the deed transfer tax under Section 5 or 6 or claims an exemption from the deed transfer tax under clause 5(1)(g) of the Act must provide their social insurance number to the Administrator if required by the Administrator for the purpose of verifying their residence status.
9 (1) If the deed transfer tax applies to a residential property transfer under Section 4 of the Act, and only a portion of a parcel is being transferred, the tax is 5% of the greater of the following:
(a) the sale price; and
(b) the assessed value attributable to the portion of the parcel being transferred as determined under subsection (2).
(2) If only a portion of a residential property is being transferred, the assessed value attributable to the portion is determined as follows:
(a) by prorating the assessed value of the parcel on the basis of the percentage of the total area of the parcel transferred; or
(b) if the amount determined under clause (a) does not reasonably reflect the assessed value attributable to the portion of the parcel being transferred, the amount determined by the following formula:
AVportion = AVtotal × FMVportion
FMVtotal
in which
AVportion = the assessed value attributable to the portion of the parcel being transferred
AVtotal = the assessed value of the entire parcel
FMVportion = the appraised fair market value of the portion of the parcel being transferred
FMVtotal = the appraised fair market value of the entire parcel
(3) If the tax was calculated and remitted under clause (2)(a) or (b) and the Administrator is of the opinion that the alternate clause is a more reasonable reflection of the assessed value of the portion of the parcel being transferred, the Administrator may select the alternate method to determine the tax and issue an assessment for the difference, if any.
(4) The appraised fair market value referred to in clause (2)(b) must be determined by a real estate appraiser registered under the Real Estate Appraisers Act.
(5) The cost of an appraisal must be paid by the grantee.
10 (1) For the purposes of the Act, the prescribed interest rate is 1% per month on the unpaid amount of tax until it is paid.
(2) Interest charges must be calculated at the rate provided under subsection (1) starting on the date the residential property that attracted the tax was transferred.
(3) The Administrator may at any time waive or cancel all or part of any interest payable under the Act.
11 (1) For the purposes of the Act, the penalty that may be assessed by the Administrator is as follows:
(a) 100% of the tax, if the grantee knowingly, or under circumstances amounting to gross negligence, made or participated in, assented to or acquiesced in the making of, a false statement or an omission in an affidavit, declaration, notice or other record filed or provided under the Act or these regulations;
(b) 20% of the tax in all other cases.
(2) The Administrator may reduce, waive or cancel any penalty that has been charged or may be charged under the Act or these regulations.
Requirement to provide records
12 (1) When required by the Administrator, a person must provide to the Administrator all records that the Administrator considers necessary to determine compliance with the Act or these regulations.
(2) The Administrator may, by giving written notice to the person, specify the form, manner and time in which the records referred to in subsection (1) must be provided, and may require that the records be provided in English or an English translation of the records verified in a manner satisfactory to the Administrator.
Use of information by Administrator
13 The Administrator may use the information collected under the Act and these regulations for the purpose of analyzing and reviewing the tax from a policy perspective.
Legislative History
Reference Tables
Non-resident Deed Transfer Tax Regulations
N.S. Reg. 41/2023
Non-resident Deed Transfer and Property Taxes Act
Note: The information in these tables does not form part of the regulations and is compiled by the Office of the Registrar of Regulations for reference only.
Source Law
The current consolidation of the Non-resident Deed Transfer Tax Regulations made under the Non-resident Deed Transfer and Property Taxes Act includes all of the following regulations:
N.S.
RegulationIn force
date*How in force
Royal Gazette
Part II Issue41/2023
Apr 1, 2022
date specified
Mar 10, 2023
The following regulations are not yet in force and are not included in the current consolidation:
N.S.
RegulationIn force
date*How in force
Royal Gazette
Part II Issue
*See subsection 3(6) of the Regulations Act for rules about in force dates of regulations.
ad. = added
am. = amendedfc. = fee change
ra. = reassignedrep. = repealed
rs. = repealed and substitutedProvision affected
How affected
..........................................................
Note that changes to headings are not included in the above table.
Editorial Notes and Corrections
Note
Effective
date
Repealed and Superseded
N.S.
RegulationTitle
In force
dateRepealed
date
Note: Only regulations that are specifically repealed and replaced appear in this table. It may not reflect the entire history of regulations on this subject matter.