Airbnb calls Nova Scotia tax on short-term rentals 'overreach'

The housing advocacy group "Neighbours Speak Up" was formed four years ago due to the lack of regulation around short-term rentals in Halifax and across Nova Scotia.

The group says they support the government's plan to increase registration fees for anyone who rents apartment space in their homes on a short-term basis.

"They've acknowledged that it's part of the problem, so they are going to try and free those up so they become part of long-term housing," said Bill Steward, a member of Neighbours Speak Up.

On Thursday, the province announced plans to increase the annual registration fee for those offering short-term rental units in the Halifax region from $500 annually to $3,600. That fee would be less significant in smaller communities across the province.

"The greatest housing demand is in HRM and also the greatest concentration of short-term rentals," said John Lohr, Minister of Municipal Affairs and Housing, during at cabinet meeting with reporters on Thursday.

Of the 6,000 short-term rentals available in Nova Scotia, the province says 2,100 are located in Halifax where there is a rental vacancy rate that is below one per cent.

Neighbours Speak Up believe the new fee increase will work, but it's not a "silver bullet."

"There is more to do to increase the housing stock, but by increasing the registration amounts, hopefully, it will dissuade some people from getting involved (in short-term rentals) or possibly getting out of the business," said Stewart.

Short-term rental site Airbnb argues there are already strict rules in place on short-term rentals in Halifax, where renters can only offer apartment space in their primary residence.

"We think this fee is a massive overreach, especially in a restricted environment like in Halifax," said Nathan Rotman, policy lead with Airbnb in Canada.

Rotman doesn't believe the increased registration fee will do much to improve the rental vacancy rate in Halifax, but it would hurt homeowners looking to supplement their incomes.

"What it's going to do is hurt people who are trying to make ends meet, who are trying to pay their mortgages, and to pay their rents by engaging in short-term rentals for a few days each year," said Rotman.

According to Airbnb, entire home listings represent less than one per cent of the housing supply in Nova Scotia.

Rotman said the average time homeowners spent renting their space was 30 nights per year and the average Nova Scotian typically earns $7,500 per year.

"This is going to impact people's ability to make ends meet during tough times," said Rotman. "The province will certainly be hearing from short-term rental houses in the provinces and that's not just Airbnb but other platforms that operate in the province."

Opposition parties say the registration fees won't do much to create more long-term housing and say they want to see the government's long-term housing plan.

"The government does not have a housing plan, so they are trying to come up with ill-thought-out announcements like today, to pretend they do," said Zach Churchill, the leader of the Nova Scotia Liberal party.

NDP leader Claudia Chender said the PC's are "grasping at straws" in the absence of a long-promised housing plan.

"They are trying to say something to make it look like they are doing something," said Chender. "My takeaway is that it's not going to make much of a difference."

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