Strong Tax Base Growth Recorded Across N.B.

New Brunswick recorded strong tax base growth over the past year, according to new numbers from the province.

The overall assessment base expanded by nearly 11 per cent, or more than $8 billion, to nearly $84.3 billion.

The tax base includes the assessed value of homes and other properties within a local government or rural district.

With high inflation impacting residents, the province encourages local governments to adjust their property tax rates, where possible.

“We have seen increased costs for everything from fuel to food in the past few months,” Local Government Minister Daniel Allain said in a news release.

“While local governments are changing due to reform, they have decision-making powers. We have given municipalities tax room and flexibility when it comes to tax rates, which is what they asked for.”

Allain noted that local governments can now increase the tax rate on non-residential properties by between 1.4 and 1.7 times the local rate. Up until now, the tax rate on non-residential properties was automatically 1.5 times the local rate.

He said the government will unveil its new funding mechanism for equalization this week, which will result in stability and predictability for years to come.

A report on the province’s community funding and equalization grant system released last week called on government to, among other things, eliminate the core funding grant and have a five-year transition period.

It said additional services offered by the regional service commissions should be funded 50/50 by the province and the municipalities, with the province’s share linked to the tax base.

The equalization formula should also include a component to recognize that roads in old local service districts which will now become part of local governments will be financed by the province.

And the equalization program budget should be increased proportional to the increase of the province’s tax base, with three-year averages being used to reduce fluctuation and increase certainty.

You can view the breakdown of assessment base growth for each municipality by clicking here.