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Part II .

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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 .

Citation

Definitions

Prescribed property tax rate

Deed transfer tax exemptions

Application for refund of deed transfer tax

Refund after appeal

Issue of refund by Administrator

Information required when exemption claimed or refund requested

Prorating tax

Interest

Administrative penalties

Requirement to provide records

Use of information by Administrator

Citation

1 These regulations may be cited as the Non-resident Deed Transfer Tax Regulations .

Definitions

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 .

Prescribed property tax rate

3 The prescribed property tax rate for all residential property that is taxable property is

$0.00 per $100 of assessed value.

Deed transfer tax exemptions

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

(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.

Refund after appeal

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.

Prorating tax

(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:

AV portion = AV total × FMV portion

FMV total

in which

AV portion = the assessed value attributable to the portion of the

parcel being transferred

AV total = the assessed value of the entire parcel

FMV portion = the appraised fair market value of the portion of the

parcel being transferred

FMV total = 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.

Interest

(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.

Administrative penalties

(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

(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

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.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

41/2023

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.

Regulation

In 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.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision 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.

Regulation

Title

In force

date

Repealed

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.