Province proposes to freeze property tax assessments for one year
The provincial government intends to introduce legislation that would freeze real property assessment values.
In a Tuesday release, the province said it would 'help provide relief and predictability to New Brunswickers as work continues to overhaul the province's property tax system.'
The amendments would allow property assessments to remain at the 2025 level next year, which the government said could benefit 430,000 properties.
'Reform of the property tax system is not a short-term project by any means, but it's necessary to ensure predictability and fairness for property owners in the province,' said Local Government Minister Aaron Kennedy in a release. 'We promised New Brunswickers that we would take action. This marks a first step on our way to property tax reform.'
Effective Jan. 1, 2026, 'the proposed amendments to the Assessment Act would freeze the amount of assessment (value for taxation) at the 2025 level for all eligible properties for the 2026 taxation year.'
There are certain exemptions:
It is also expanding access to the equalized payment plan. The proposed amendments would allow eligibility for the 2026 tax year to additional property types, including non-owner-occupied and other residential and non-residential properties.
But the move is being criticized by the Union of Municipalities of New Brunswick and the the Association francophone des municipalités du Nouveau-Brunswick.
It says this 'unilateral move' breaks a commitment to municipalities and sets a troubling precedent for interference in municipal finances.
'This government is about to table legislation we've worked on together for over a year to improve municipal funding,' said Yvon Godin, who is the president of the AFMNB. 'But in the very same week, they're pushing forward a measure that cancels out those gains. You can't call that partnership.'
The two groups said they share the concerns about affordability for New Brunswickers, however, it explains the blanket freeze undermines municipalities' ability to deliver basic services, as well as, adds to the pressure already facing municipalities.
UMNB has said studies have identified a $200-million funding gap for municipalities.
Municipalities in New Brunswick are currently only funded by property tax assessment. It also cannot run deficits.
'The freeze puts more pressure on property taxpayers as municipalities rely on property taxes for 85% of our budgets. It puts immense pressure on municipalities to meet the mandates given to us through local governance reform and downloaded provincial services,' said UMNB president Brittany Merrifield.
According to UMNB, the freeze could cost municipalities nearly $58 million, almost the same amount promised in additional funding for 2026.
Merrifield said in the release it is neither equitable nor sustainable. Both organizations said it reiterates that property tax reform and fiscal reform for municipalities are two different things.
'This isn't partnership – it's paternalism,' said Godin. 'Unilateral decisions erode trust – and destabilize communities.'
The province is expected to table the legislation for fiscal reform on Wednesday.
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