Owners of large apartment buildings and businesses in New Brunswick will be getting a property tax break over the next two years.
The provincial government released details Friday about a new property tax relief program being rolled out for the 2022 and 2023 taxation years.
Annual assessment increases exceeding 10 per cent will be reimbursed to property owners, either through a credit or a refund.
“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,” Finance Minister Ernie Steeves said in a news release.
“This property tax relief program will help offset the rising costs affecting many property owners across the province.”
The relief program will only be available to non-residential properties and apartment buildings with four or more units.
Properties that have undergone new construction, major improvements, or recent sale will not be eligible, and neither will vacant properties.
“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,” said the release.
The relief program is similar to a spike protection mechanism currently in place for most owner-occupied residential properties which limits annual assessment increases to 10 per cent. Implemented in 2013, the mechanism is meant to protect eligible homeowners from significant one-year spikes in their assessments.
Provincial officials say the relief program will provide provincial and local property tax savings of about $14 million this year. It will be fully funded by the province and will not affect local government property tax revenues.
Affected property owners will receive a notice in September providing more details on the amount of relief being granted. They will have the option to leave a credit on their account for the 2023 taxation year or to request a refund if 2022 taxes were already paid.
