The Department of Finance is supplied annually with the list of municipal, local service districts and rural community rates, which are used to calculate the amount of annual tax to be levied and then notifies taxpayers by way of an Assessment and Tax Notice (usually the first working day of March each year). Although the Real Property Tax Act allows for each Municipality or Rural Community to bill and collect its own municipal tax, all have opted to have the Province collect on its behalf. The Province guarantees 100% of the municipal tax warrant regardless of its rate of collection or changes in assessed valuation throughout the year. The Department of Local Government works directly with each municipality and rural community and ensures payments to the municipalities and rural communities.
Annual Assessment and Tax Notice (also refer to SNB Property Assessment Services – Understanding your Assessment and Tax Notice)
Each year, usually on the first working day of March, this Notice is mailed to the assessed owner of real property as of January 01. This Notice advises the owner of the current valuation, applicable tax rates, taxes for the year, arrears or previous credits carried forward and the balance due. The Notice will show the mailing date of the Notice and the last payment date before penalty commences on any unpaid current tax.
The Notice is in three (3) parts:
- the first being the assessment and tax information;
- the second part is the Request for Review of Assessment used by taxpayers to refer (appeal) their assessed valuation to Property Assessment Services of Service New Brunswick (see Appeal Process). All requests for review must be submitted within 30 days of the date of mailing; and
- the third portion is the payment stub, which should be attached to the payment for accuracy of processing.
Supplementary Assessment and Tax Notices
These Notices are issued on accounts as an amendment to the March Billing as determined by SNB Property Assessment Services, usually to correct an error on the Annual Assessment and Tax Notice. Supplementary Notices are not issued as a result of a change in ownership through the year. The onus is on the purchaser to inquire as to any balance due on real property acquired. These Notices are issued around the first of each month.
Tax statements are issued from March to December each year where there has been a change to the account balance for any reason other than a payment, e.g. assessment change, non-negotiable cheque, transfer payments. They are issued to inform the taxpayer of a change, however, they do not change the dates established on the March Notice. There is no “payment due date” as their main purpose is to advise that payment is past due. Statements are also issued in March and April as a result of a change in assessed ownership that occurred in January or February.
Once a year, usually in September, a tax statement is issued on accounts that only owe the current year at the time of issuance over a set dollar limit.
The following is a description of the Tax Notice (tax bill):
Property Account Number (PAN)
A Property Account Number is assigned to each property to identify it for assessment and taxation purposes. It is located in the upper right portion of the Assessment and Tax Notice.
Parcel Identification Number (PID) (LRIS)
The initials PID stand for Parcel Identification Number. This number is assigned to your property to locate it on maps. It is located in the upper right portion of the Notice.
The Mailing Date reflects the date the Notice is issued.
Balance Due Date
The Balance Due Date indicates the date the current taxes are due and payable. Inclusive in the balance due are the current taxes plus any tax arrears or minus any credits allowed.
All real property is assessed at its real and true value as of January 1 each year. The taxation year is the calendar year - January to December.
Penalty Date and Overdue Accounts
The Penalty Date shown on the Notice is the last date current taxes can be paid without a penalty being charged. After that date, the current penalty rate of 0.7591 percent per month compounded (9.50% annually), is applied on the balance due.
The Penalty for Overdue Accounts commences the first day of the month following 85 days from the mailing date (annual levy date). If the annual levy is cancelled and re-established as of another date, the penalty date will be moved accordingly. Penalty will continue to accrue the first day of each month thereafter until the account has been paid in full.
Any adjustment to tax as a result of an assessment change will automatically adjust any penalty associated with that tax.
Any unpaid taxes and/or penalty from previous years will show as arrears due. Payments received after the production of the Notices will not be reflected on the Notice but will be credited to your tax account. By calling your local Service New Brunswick Service Centre you may obtain an up-to-date balance.
It is possible that at the time the Notices were produced there may have been a credit balance from previous year(s) in your tax account. Credits usually occur as a result of an overpayment or as a result of a reduction in assessment after a payment has been received. On occasion, some taxpayers make prepayments towards their next year's taxes.
Effective April 3, 2012, the rate of interest payable on property tax credit balances is reduced from 3% simple interest per annum to 1.5%. Interest is applied on two types of credits:
- Change in Assessed Value
A credit originating from a reduction in assessed value, after full payment has been received, will have interest applied immediately to the tax account at the time the adjustment is made. The interest will be based on the amount of the tax reduction and the number of days between the date full payment was received and the date the adjustment was made to the tax account. This credit will be treated as a pre-payment unless a refund request is received.
A credit balance resulting from pre-payments toward your next year’s taxes is eligible to receive interest, up to the amount of taxes billed on your last Assessment and Tax Notice. Total pre-payments in excess of this amount will not earn interest. Interest is applied at the time the following year’s taxes become due and is calculated on the number of days between the pre-payment(s) and the date of issuance of the next Real Property Assessment and Tax Notice, normally in early March. Interest does not apply to pre-payments that are refunded.
Business Improvement Area (BIA)
On behalf of each Business Improvement Area (BIA) Corporation, in accordance with the Business Improvement Areas Act, the Province levies and collects a business improvement area levy at a rate determined by the BIA Corporations. This rate is on real property with buildings that are classified as non-residential and is not to exceed $0.20 per $100 of assessed value.
Residential Tenancy Fee
The Residential Tenancy Fee is a fee on residential premises that may be subject to rental income. Certain properties are exempt from this fee, as outlined in the Residential Tenancies Act which is administered by the Office of the Rentalsman. The fee imposed is $0.0486/$100 assessment based on the residential portion rented for habitation.
Bottom Portion of Tax Notice
The bottom portion of the Notice is to facilitate ease of payment. This payment stub should be attached to your payment to ensure payment is posted to the correct tax account.