Province Holds Line on Education Tax Rate

The Mandatory Education Tax rate will remain unchanged in 2007-08, at 34.5 cents per $100 dollars of assessed property value.

Revenues from the Mandatory Education Tax will be $178.5 million in 2007-08, up $12 million over last year. The increased revenue comes from rising property values across the province.

For example, residential property values rose an average of 9.6 per cent over the past year. An average home that was assessed at $175,000 for 2006 would be assessed at $191,800 for 2007. As a result of the assessment increase, the owner would pay $57.96 more this year to support public schools.

Nova Scotia levies the Mandatory Education Tax on property owners on behalf of school boards. Municipalities collect the tax and transfer the money directly to school boards. The education tax is not part of revenues municipalities use to provide services, so passing the education tax funds to the school board does not diminish a municipality's ability to provide services.

Most provinces support their public education system, in part, through property taxes and Nova Scotia's rate is lower than many other jurisdictions. The province funds the majority of the costs of the $995-million public school system from general revenues.