The Cap Assessment Program (CAP)
Q. What is the CAP Program?
A. The Cap Assessment Program (CAP) is a program to help protect property owners against the property 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. The CAP Program was amended in 2006, 2007 and 2008, as well.
Q. Do I still need to apply for the CAP Program?
A. No. The Cap Assessment Program (CAP) has been changed to make the process easier for property owners. The change eliminates the application process and deadline. This means Nova Scotia residents who own eligible residential or resource properties that have market value increases more than the annual change in Nova Scotia Consumer Price Index (NSCPI), will be considered for the CAP Program without having to apply. Both market and capped assessment values are on the back page of the 2010 assessment notice, if applicable.
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 is the CAP percentage and how is it determined?
A. Under the Assessment Act the CAP is set at the annual increase in the Nova Scotia Consumer Price Index. For 2010, the CAP rate is set at 0.0%.
CAP Eligibility
Eligibility Criteria & Eligibility Appeals
If there is no Taxable CAP Value indicated on your notice, please contact the PVSC office listed on your notice. If the PVSC office says you are not eligible for the Capped Assessment Program and you believe you meet the following criteria, please complete the Capped Eligibility Appeal Form and send it to the address on the form.
- 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 except for mobile home parks).
- 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.
- Mini-homes, mobile homes, mobile home parks, co-operative housing and the residential portion of commercial farms are now eligible
Construction does not qualify in the first year it is added to the Assessment Roll.
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?
A. Only Nova Scotia residents are eligible to be included in the CAP Program unless the property is a mobile home park.
Q. What is Construction?
A. Construction is defined as additions/renovations to the property that were not assessed in the previous year.
Q. Are condominiums eligible to be included in the CAP Program?
A. Beginning in 2006, 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. Are mobile homes eligible to be included in the CAP Program?
A. Yes, mobile homes are included in the CAP Program.
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 Nova Scotia. The company must be holding the land it is deeded for the benefit of the family or some of the family members.
B. 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 Nova Scotia. 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.
Starting 2008-09, there were changes to the CAP Program
- In 2006, legislation changed to allow new “capping” limits for residential properties (Bill 92) effective 2008-09.
- Bill 92 set the CAP rate to be the same percentage as the increase in the Nova Scotia Consumer Price Index (NSCPI).
- The NSCPI change used in 2008 was 2.3% and for 2009 it was 3.4%. For 2010 it is set at 0.0%.
- The NSCPI provides a percentage of how much the prices Nova Scotians have paid for consumer goods in a given month has gone up or down. The index is determined by calculating, on a monthly basis, the cost of a fixed “basket” of goods purchased by a typical Nova Scotia consumer during a given month. The basket contains products from various categories, including shelter, food, entertainment, fuel and transportation. Since the contents of the basket remain constant in terms of quantity and quality, the changes in the index reflect price changes, up or down.
- Additional changes to the CAP Program make the process easier for property owners. These changes eliminate the application process and deadline. This means Nova Scotia residents who own eligible residential or resource properties that have market value increases more than the NSCPI, will be considered for the CAP Program without having to apply. In other words, as long as they meet the residency and ownership criteria, they will receive the CAP.
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 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. Can I appeal my property assessment?
A. Yes, property owners may appeal their market value assessment. They can also appeal their eligibility classification in the CAP Program.
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.
Q. What is the CAP percentage and how is it determined?
A. Under the Assessment Act the CAP is set at the annual increase in the Nova Scotia Consumer Price Index. For 2010, the CAP rate is set at 0.0%.
More Information on the CAP Assessment Program
If you require further information, refer to the Frequently Asked Questions section or call us at 1-800-380-7775.
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PVSC Information Line
1-800-380-7775