Heritage Place - Property Tax Abatement
The Property Tax Abatement Program for Heritage Properties is an incentive for owners of heritage properties to restore and re-use designated historic places, thereby extending their useful life and preserving their heritage value to the community.
The following real property is an eligible heritage property for the purposes of the property tax abatement program:
(a) real property listed in the New Brunswick Register of Historic Places. This provincial register is a searchable database containing listings of designated Provincial Heritage Places and Local Historic Places.
(b) real property that is a National Historic Site under the Historic Sites and Monuments Act (Canada).
In order for projects on heritage properties to be eligible for this program, they must meet the following criteria:
- The property must undergo a significant restoration. For the purposes of the program, a significant restoration is defined as a restoration project with construction costs of at least $100,000, or 20% of the current assessed value of the property prior to the restoration, whichever is greater. Construction costs can include both interior and exterior restoration costs.
- At least 75% of the finished floor area of the heritage property shall not be eligible for the Provincial Residential Property Tax Credit (i.e. primary residence)
- During the restoration process, the project will comply with the guidelines referred to in paragraph 53(3)(e) of the Heritage Conservation Act, if applicable.
- Projects must adhere to the Standards and Guidelines for the Conservation of Historic Places in Canada.
- The project will be completed by the date specified in the application.
Beyond the above criteria, other considerations will be addressed when evaluating project applications. The degree to which the project is likely to prevent the heritage property from being demolished or from deteriorating and the extent to which it will extend the life of the property will be considered. The applicant is expected to illustrate the viability of the project and the anticipated contribution of the project to the vitality of the community.
By undertaking an approved restoration project to a designated heritage property, the Property Tax Abatement Program for Heritage Properties allows the owner to be forgiven a portion of the net increase in provincial and municipal property taxes resulting from the increase in the assessed value of the property for a four-year period. Specifically, in the first year of the program, the owner of the heritage property will pay property tax on the pre-project assessment. The owner would then be forgiven 75% of the assessment increase during the second year, 50% in the third and 25% in the fourth year. Beginning in the fifth year, and continuing for subsequent taxation years, the owner would pay the full property taxes based on the full post-project assessment.