News & Insights

Tax Alert | Nova Scotia Real Property Tax Rebate for Tourism Accommodations

Tax Development Nov 12, 2020

Nova Scotia recently introduced a new rebate program to help owners of hotels, motels, and other tourism accommodations reduce their 2020–2021 commercial property tax burden. The Tourism Accommodations Real Property Tax Rebate program offers eligible operators a 25% property tax rebate for the current tax year.

Many real estate sectors have experienced the financial impact of temporary closures, operating limits, and travel restrictions imposed in Canada since early March 2020, and the tourism and hospitality sectors have been severely affected by these necessary measures. The announced program offers eligible tourism accommodations operators a one-time rebate of 25% of 2020–2021 commercial property tax paid in relation to qualifying accommodations.

To be eligible for the rebate, operators must satisfy the following conditions:

  • The operator’s 2020–2021 commercial property tax bill has been paid in full and no real property tax is in arrears;
  • The tourism accommodations qualify as “roofed accommodation” as defined under the Tourist Accommodations Registration Act, offer five or more rooms available for rent to the public, and have been assessed as commercial property;
  • Qualifying accommodations are either owned by the operator or leased under conditions that require the operator to pay property tax on a portion of the real property;
  • The operator is registered under the Tourist Accommodations Registration Act; and
  • A year-over-year accommodation revenue loss of at least 30% has been experienced for the period from April 1 to October 31, 2020.

The application form and instructions are expected to be made available online on November 16, 2020.

More Information

Further information on this new property tax rebate program can be found on the province’s website at:
https://novascotia.ca/coronavirus/tourism-accommodations-real-property-tax-rebate-program/

As tax advocates and partners, Ryan is dedicated to finding solutions that alleviate your operational expenses so that your business can prosper in times of crisis.

If you have any questions about your organization’s eligibility for this rebate or any other property tax concerns, please do not hesitate to contact your Ryan representative.