Environment and Local Government
Government to introduce repeal of LNG tax break legislation in November25 October 2016
SAINT JOHN (GNB) – The provincial government will repeal the 2005 legislation which caps the property tax paid to Saint John by the Canaport LNG terminal. This will impact tax revenues for Saint John and, through community equalization funding, other local governments. Premier Brian Gallant made the announcement today.
“We are proud to listen to Saint Johners and New Brunswickers and get them results on their priorities,” said Gallant. “The Saint John Common Council has made it clear that repealing this legislation is a priority for Saint John. We are proud to be working with Mayor Don Darling to deliver results on this and other opportunities for the port city.”
“My colleagues and I voted against this legislation in 2005 when it was brought forward by the government,” said Energy and Resource Development Minister Rick Doucet. “I am proud to be part of the government that is undoing this deal and restoring some tax fairness to Saint Johners and New Brunswickers.”
“Ensuring Saint John can collect the full tax value of the assessment of this property is fair, and I am proud to have worked hard to resolve this issue,” said Service New Brunswick Minister Ed Doherty.
Doherty attended today’s announcement on behalf of Environment and Local Government Minister Serge Rousselle.
“We would like to thank the provincial government for following through on this commitment to the residents of Saint John, in delivering taxation fairness and a more equitable distribution of taxation between residents and industry,” said Mayor Don Darling. “This is the right thing to do.”
The 2005 legislation was introduced at the request of Saint John Common Council. The new legislation, also being introduced at the request of council, will repeal this arrangement for the 2017 property taxation year. As there is a possibility of an appeal, the additional tax revenue will be set aside in a special account to protect the financial integrity of the provincial government, the City of Saint John and local governments that receive equalization payments until any appeal to the valuation of the property has been resolved. When the property valuation is finalized, any balance in the account, with applicable interest, will be paid to Saint John and other entitled local governments.