Government of Nova
gov.ns.caGovernment of Nova Scotia Nova Scotia, Canada
Municipal Affairs
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Grant-in-Lieu of Provincial Property Tax

Typically, all levels of government are exempt from paying municipal property taxes. A city, town or village cannot tax the province. In Nova Scotia, Section 3 of the Municipal Grants Act provides for the payment of such grants on eligible provincial property. Certain property, such as health and some educational institutions, are exempted from this grant program but are eligible for a Fire Protection Grant.

Grant-in-Lieu of Provincial Property Tax

This is a legislated grant to municipalities, villages, and service commissions on eligible tax exempt properties to help offset the cost of providing municipal services such as police protection and roads. For example, provincially owned courthouses receive the Grant-in-Lieu because the property is exempt from property tax.

Grant Calculation

Tax rate x assessment = the amount that would be paid if the property were not tax-exempt.

How Municipalities Apply

Municipalities are required to provide the Department of Municipal Affairs with a list of properties they believe are eligible for the Grant-in-Lieu as part of their Statement of Estimates (SOE). The submitted list of properties is verified by Municipal Affairs staff before payment is made.