New Brunswick caps property tax payments for businesses and large apartments – New Brunswick


Owners of businesses and apartment buildings in New Brunswick could benefit from additional relief on their property tax bills.

A temporary spike protection mechanism, used to prevent soaring property values ​​from significantly increasing a property tax bill, was introduced by the provincial government on Friday morning.

“I hope the two years of spike protection is a pathway to spike protection for everyone,” New Brunswick Finance Minister Ernie Steeves told reporters.

Later, Steeves said that was just his opinion and not a decision voted on by the cabinet.

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For now, the relief will be in effect for the 2022 and 2023 property tax years and will be available on non-residential properties and apartment buildings with four or more units, with annual assessment increases greater than 10%.

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A similar spike protection mechanism was introduced in 2013 for homeowners.

Another temporary measure to ease the pressure caused by the rising cost of living was a sticking point for Green Party leader David Coon.

Recently, Coon had advocated for the province’s 3.8% rent cap to be extended for several years, with regulations allowing for its review and removal.

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“He just throws bread crumbs with these unique things. One-time rent cap for one year, one-time commercial protection against rent spikes for two years. There has to be a thoughtful policy,” Coon said.

Liberal MP Jacques LeBlanc says providing property tax relief on commercial properties is a good start, although it shouldn’t be used on a temporary basis.

If it continues in its current state, LeBlanc fears the spike protection measure will further harm short-term tenants.

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Proposed rent cap legislation is being reviewed by the NB Legislative Committee.

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“The thing is, they have to foot the biggest bill this year, and they won’t get credit until next year,” he said.

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LeBlanc added that the introduction of two-year spike protection for landlords, while the rent cap remains in effect for only one year, is a sign of inequality.

According to a government press release, the relief program will provide provincial and local property tax savings of approximately $10 million for apartment buildings with four or more units, and $4 million for non-residential properties.

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