Property assessment freeze for one year proposed by Holt government
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The New Brunswick government has introduced legislation to freeze property assessments for homeowners, landlords and businesses for one year while it works on a promised plan to reform the province's property tax system.
Finance Minister René Legacy submitted what he called an Act Respecting Property Tax Affordability Measures for first reading Tuesday afternoon.
The freeze is meant to buy the government time to make changes in the way nearly $1.8 billion in New Brunswick annual property tax revenue is calculated and apportioned among more than 400,000 properties and their owners.
About two-thirds of property taxes in New Brunswick, more than $1.2 billion this year, fund municipal governments, with the rest flowing to the province.
"Our government has committed to overhauling the property tax system to ensure stability, fairness and affordability, and while that process is underway, we are committed to property tax relief measures," Legacy said in announcing the plan.
WATCH | N.B.ers have been 'loud and clear' about wanting relief, finance minister says:
Province hopes to stop huge property tax jumps with one-year assessment freeze
57 minutes ago
Duration 1:03
If passed, legislation that would freeze assessments for a year would benefit the owners of about 430,000 properties, New Brunswick government says.
Property taxes in New Brunswick have soared in recent years, mostly for homeowners and landlords, as the cost of housing has escalated.
In Moncton, residential assessments are up 73 per cent in six years, more than double the increase in inflation or the increase in business property assessments.
In Saint John, where a number of business properties have had assessment reductions in the last two years, Mayor Donna Reardon said she doesn't understand why those would be frozen if the problem of rising assessments has been with housing properties.
"We didn't anticipate this at all," said Reardon.
"I don't think any municipality would recommend to have a freeze because it's a blanket freeze. You know, everybody gets the freeze. Our costs won't be frozen."
Assessment freezes have been used in the past in New Brunswick with mixed results.
In 2018, the former government of Brian Gallant implemented a one-year assessment freeze during a controversy over how Service New Brunswick was valuing houses. Eventually, 41 New Brunswick municipalities raised their property tax rates to save their budgets in response.
A partial "permanent" freeze implemented in 2013 by the former David Alward government on homes that experienced large assessment increases in 2011 and 2012 was eventually repealed in 2021 by former Alward cabinet minister Blaine Higgs when he became premier.
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