Some Maritime renters want tax break program similar to other provinces

Tax season recently came to a close for most Canadians, but renters in the Atlantic region will not get a tax break that people in other parts of Canada do.

Other provinces like Quebec, Ontario and Manitoba have provincial benefits for which people can qualify, which provides financial support if they are low-to-moderate income households.

“The information they use in order to calculate this because its income tested, it would all be on the same form so when you file your tax return [and] complete the form, apply for it and provide the data in terms of your rent or property taxes,” explained Keith McIntyre, tax partner at Grant Thornton.

In Nova Scotia, there is the Nova Scotia affordable living tax credit which provides a base amount of $255 for an individual or a couple if they are eligible. However, that amount is reduced by five per cent of the household net income over $30,000.

According to rental website Zumper, the average price of a one bedroom is now $2,073, which is not much more than other centres.

CTV News reached out to the Nova Scotia government’s Department of Finance and Treasury Board if it would consider this. However, in its statement, the province did not address the questions. Instead it said “Nova Scotia has a rent supplement program that helps renters with the cost of their rent if they pay more than 50% of their pre-tax (gross) household income on rent.”

The eligibility of the program requires people to have an annual pre-tax (gross) household income below the current household income limits.

According to these limits, an individual in Halifax renting a one-bedroom apartment would have to earn $47,000 to qualify, whereas someone living in rural areas of the province would have make a household income of $57,500.

Long-time renter in Halifax Edna Longaphy finds the cost of rent has increased substantially in recent years and it has become a burden.

“I’ve been working since I was 17 and I’m still working and I am over 65. I’ve never seen costs of rentals go up so much. You have to work two jobs to pay rent now,” she said.

She said she wants the province to consider a program similar to other provinces that allow residents to claim their rent when filing their taxes. “We need to be claiming our rent. It’s huge. I think it’s beneficial for us to be able to do that. It’s really taken a lot of our money to live.”

Nora Burrows, a student in Halifax, said she was surprised to learn other provinces have a program that provides a tax deductible on rent.

“It makes you question if they are getting returns where they don’t pay as high taxes, but we’re paying higher taxes what’s the benefit?” she said.

For a program similar to other provinces to be implemented would require a buy-in from both the provincial and federal governments, said McIntyre.

“The province would first have to see if they can afford this. Provincially you have to give the federal government a lot of head time because they have to adjust the tax return and build it into a system and so they have to do something now in terms of actioning something like this,” he said.

McIntyre said he often works with rentals and believes a program like this in the province would help people a lot.

“People need assistance here and if you look at how many universities are inside Halifax, think of all the students that are struggling with housing as a cost and there also are a lot of seniors on fixed incomes that are indeed renting,” he said.

“It’s really hard some days,” said Longaphy. “I don’t expect handouts, I’ve never looked for handouts and I’ve always worked, but it’s getting really difficult and I’ve never seen it this way.”