St. John's tells some residents to renovate their homes — or pay nearly $700 in extra water taxes

Sandra Nightingale is one of nearly 700 St. John's residents who are now paying an extra $675 in annual water taxes. (Darrell Roberts/CBC)

A St. John's senior's water tax bill is doubling after the city removed an exemption for homeowners who don't rent the second unit in their home.

Sandra Nightingale, a senior living on a fixed income, said she was already having trouble affording the west end home where she's lived for 50 years.

"Everything has gone up. I'm a single person going to the store, and in my mind all the time I'm saying 'oh my goodness. Oh my goodness.' Everything I look at. I don't know how people are managing with children," she said in an interview with The St. John's Morning Show.

Nightingale has a second unit in her home, which she used to rent out. She said as she became older — and had some problems with tenants — the second unit became too difficult to manage. Now, she uses the unit as storage. Every year, she fills out a form, attesting she isn't renting out the unit, and the city exempts the unit from the water tax.

But last fall, Nightingale said she got notice that the exemption was coming to an end — and her water tax bill was about to double to $1,350.

"It's difficult, you know? I mean, where do you suddenly pull $700 out of the air?" she said.

To exempt or not exempt

St. John's city councillor Ron Ellsworth said the exemption was implemented about 20 years ago to help a handful of residents who weren't using their second unit, but has ballooned to include nearly 700 addresses.

"We're not allowed to offer exemptions. We're not allowed to do anything only apply the taxes that we're supposed to apply," he said.

LISTEN I  Some St. John's residents see water tax bills double: 

Ellsworth said he's sympathetic to homeowners like Nightingale who are seeing their tax bills go up, but removing the exemption was the only way to ensure the tax was applied fairly.

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The decision to remove the exemption came around the same time the city unveiled this year's budget, which saw the average homeowner's property tax bill go up $240.

Ellsworth said homeowners can avoid the tax by deregistering their second unit — a process which may require renovations. Among other requirements, homeowners need to create an indoor entrance between the main and secondary units and remove the stove outlet.

"Every unit is different, every unit is something separate, so what I would suggest is anybody who's got an inquiry contact the city, speak to our building and property management folks so they can come in and look at your property to determine what you need to do on your property," he said.

Nightingale said the process — especially the removal of the stove — doesn't make sense to her, and she's voiced her complaints to city staff and council. She's planning to sell her home, and said removing the second unit isn't an option.

"Not a chance," she said. "It destroys the value of the house as far as I'm concerned."

Ellsworth said the city isn't backing down on the decision, but said residents can call 311 if they have questions about the tax or to apply for financial support.

He said the amount of extra money the city will take in from the tax will depend on how many residents convert their homes into one-unit dwellings.

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