Property tax relief program introduced to help owners of businesses, large apartment buildings03 June 2022
FREDERICTON (GNB) – The provincial government is providing property tax relief for owners of eligible residential rental properties (four units or more) and non-residential properties (businesses/industry) to help manage recent property tax increases due to rising assessments.
“Our government has heard from individuals and the business community that there is a need to address the high tax burden in New Brunswick and the cost pressures they face,” said Finance and Treasury Board Minister Ernie Steeves. “This property tax relief program will help offset the rising costs affecting many property owners across the province.”
A spike protection mechanism is currently in place for most owner-occupied residential properties with an assessment increase greater than 10 per cent. This mechanism was implemented in 2013 to protect eligible homeowners from significant one-year spikes in their assessment.
The new property tax relief program will follow criteria similar to the existing spike protection mechanism for homeowners, and will be available for the 2022 and 2023 property taxation years.
This relief program will be available to non-residential properties and apartment buildings with four units or more, with annual assessment increases greater than 10 per cent in 2022 and 2023. Like the spike protection mechanism for homeowners, this relief will not include properties that have undergone new construction, major improvements or recent sale. Vacant land is also excluded.
For eligible properties, the value of the annual relief will be equal to the provincial and local property taxes on the annual assessment increase exceeding 10 per cent.
For 2022, this relief program will provide provincial and local property tax savings of about $10 million for apartment buildings of four units or more, and $4 million for non-residential properties. This program will be fully funded by the provincial government and will not affect local government property tax revenues.
No application will be necessary. For the 2022 relief, affected property owners will receive a notice in September 2022 providing more details on the amount of relief being granted. Property owners will have the option to leave a credit on their account to be applied to the 2023 taxation year, or to request a refund if 2022 taxes were already paid.
This new property tax relief program is in addition to the lowering of provincial property tax rates announced as part of the 2022-23 budget. Legislation was introduced earlier this year to reduce provincial property tax rates over the next three years.
Providing relief to owners of apartment buildings with four units or more will help offset the increase in property taxes for those who are most affected.
The residential real estate market, including apartment buildings of four units or more, has experienced significant increases in property taxes due to rising assessments over the past two years.
Overall, buildings with three units or fewer have experienced smaller assessment increases and many are already partially covered by a spike protection mechanism applied to the owner-occupied portion of the property.
The government will continue to monitor the housing situation and add measures where necessary, said Steeves. Property owners seeking more information on eligible properties may email firstname.lastname@example.org.