FAQ's: CAP Assessment Program

If you require further information, please call the Assessment Information Line 1-800-667-5727

CAP Assessment Program

Q. What is the CAP Program?
A. The Cap Assessment Program (CAP) is a program to help protect property owners against the tax effects of sudden and dramatic assessment increases in the market value of their property. The program limits the amount of assessment that municipalities can use to calculate your property taxes. The CAP Program is a result of legislation passed by the Nova Scotia legislature in May 2004. This program came into effect with the 2005 assessment.

Q. How does the CAP Program affect my assessment?
A. The CAP Program does not affect your market value assessment. All property in Nova Scotia continues to be assessed at market value. If you are eligible for the CAP, you will receive a capped assessment value in addition to your market value assessment. Municipalities will use your capped assessment value when calculating your property taxes.

Q. How does the CAP Program affect my taxes?
A. The cap limits the amount of assessment increase that municipalities can use to determine the amount of your property taxes. Contact your municipality for more information on property taxes.

Q. What happens to the concept of market value?
A. All properties will continue to be assessed at market value as required by legislation. The cap simply limits the amount of assessment increase that municipalities can levy in property taxes. Property owners who are eligible for a cap will receive both a market value and a capped assessment value. The municipality will use the capped assessment value to calculate the property tax.

Q. What is the cap percentage and how is it determined?
A. The base year is 2001, and the cap for the subsequent years is 15 percent increase in 2002, 15 percent in 2003, and 10 percent each year from 2004 - 2007. Each year, a cap percentage is set by the Government of Nova Scotia. Starting in the taxation year 2008-2009 the cap will be set at the Consumer Price Index. Until then, the cap on how much your property’s assessed value can increase is still 10 per cent.

Q. can I find a copy of the legislation that describes this program?
A. A. See the House of Assembly's listing of Bills: http://www.gov.ns.ca/legislature/legc/ under Bill 40 and Bill 92. If you do not have access to the web, call the Legislative Assembly Library at 424 4661.

Cap Eligibility

Q. How do you determine who is eligible for the CAP Program?
A. In order to be eligible for the CAP a property must:

• be at least 50% owned by a Nova Scotia resident (residency is defined as someone who lives in Nova Scotia no less than 183 days a year).
• be classed as taxable residential or taxable vacant resource property
• be classed as taxable residential or taxable vacant resource property.
• have a market value increase that exceeds the cap, excluding construction.
• be owned by the same person or transferred to certain close relatives such as a spouse, child, grandchild, great grandchild, parent, grandparent, brother or sister. The property may also be owned by or transferred to family trusts or farm cooperatives.
• If a condo, be owner-occupied. Construction does not qualify in the first year it is added to the Assessment Roll.

Q. Who classifies as a close relative?
A. For the purposes of this program, a close relative is defined as a spouse, child, grandchild, great-grandchild, parent, or grandparent, brother or sister. The property may also be owned by or transferred to family trusts or farm cooperatives.

Q. What happens if a property owner is not a resident of Nova Scotia, but the property is more than 50% owned by Nova Scotia residents - can they apply on their co-owners behalf?
A. Only Nova Scotia residents are eligible for the cap. It must be the resident that applies.

Q. What is Construction?
A. Construction is defined as structural additions to the property that were not assessed in the previous year.

Q. Are condominiums eligible for the CAP?
A. Beginning in 2006, applications from property owners of owner-occupied condominiums were considered for the CAP. Please note that the property must meet all eligibility criteria to qualify, including being owner occupied.

Q. Why are mobile homes in parks not eligible for the CAP?
A. Legislation and regulations guiding the CAP program do not cover mobile homes in parks.

Q. Why are commercial properties not eligible for the CAP?
A. The intent of the legislation for the CAP program is to help protect Nova Scotia residents who own taxable residential and taxable vacant resource property, from the tax effects of sudden and dramatic assessment increases in the market value of their property. The program limits the amount of assessment that municipalities can use to calculate your property taxes.

Q. What is a Family Trust or Farm Cooperative?
A. FAMILY TRUST - A company that has been deeded land that qualifies for the capping which majority of shares are in the name of or belong to persons ordinarily resident in the province of NS and the company's head office is in NS. The company must be holding the land it is deeded for the benefit of the family or some of the family members.
FARMERS COOPERATIVES - A cooperative company whose head office is in NS and whose majority of shares are owned by or belong to persons ordinarily resident in NS. The land deeded to the Cooperative must be for the benefit of the farmers and held by the company for their use under the terms of the Cooperative.

Application Process

Q. How do I apply for the CAP program? / Where can I get an application?
A. A. The CAP program is not automatic – you must apply. Property owners only need to apply for the CAP once. When you do, you are considered to be “in the CAP program” for that property and we will examine your future assessments on that property to determine if they qualify for the cap.
NOTE: Applications must have been received by September 30, 2006 to have been considered for 2007.
To apply for the CAP:
- complete a CAP application and return it to the address on the application or any Assessment Office by the deadline of September 30.
- application forms are available: at any Assessment Office, on-line at www.gov.ns.ca/snsmr/asmt/cap/ .

Q. When can I apply for the CAP program?
A. Completed applications must be received by Assessment Services on or before September 30 to be in the upcoming release of assessment notices (Early winter of each year).
Example: September 30, 2006 is the deadline to apply for a cap on your 2007 assessment

Q. I applied for a CAP. How do I find out about the status of my application?
A. Your February 2007 assessment notice will indicate whether you qualify for a capped assessment.

CAP Accounts

Q. If my account receives or has received a cap, will my assessment continue to be capped every year after that?
A. Property owners who applied for the CAP program and continue to meet the residency and ownership requirements will be re-considered for a capped assessment on that property each year. Your assessment account will be reviewed each year to ensure that you meet all eligibility requirements for that year.

Q. Does this mean that once the property assessment has been capped that my assessment will remain the same forever?
A. No, your assessment will continue to be assessed at market value. However, if you are eligible, it will only increase by the cap percentage set each year.

Q. Can I appeal my property assessment?
A. Property owners may only appeal their market value assessment. They may not appeal their capped amount.

Q. If I renovate my house, or build a new deck will this affect the capped assessment?
A. If you renovate or add new construction (such as a deck or an extension to a building) to your property, this may affect the portion of your property assessment that is eligible to be capped. Under the capping legislation, construction is not subject to the CAP in the year it is added to your assessment.

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