There’s little clear insight into what residential landlords and non-residential property owners in New Brunswick think about the assessment and property tax system following the first phase of a promised overhaul. A newly released summary of findings from this summer’s public consultation doesn’t reveal how many ratepayers in those categories participated.
“Our government remains committed to overhauling the property tax system to make it predictable, transparent, fair and stable for all New Brunswickers,” New Brunswick’s Minister of Finance and Treasury Board, René Legacy, observed earlier this month. “The release of this report is an important step forward, as we move into building solutions using the feedback we have received.”
Nearly 7,600 respondents fully completed an online survey, which, among 22 questions, asked them to indicate if they owned commercial/industrial or residential rental properties. (Residential landlords were further required to specify whether that’s fewer than four or 4+ units.) However, the published overview of findings is hazier. It simply reports that 96 per cent of respondents own property in New Brunswick, while 94 per cent own a primary residence in the province.
The breakdown of respondents’ age and annual property tax expenditure offers some indirect clues. Fifty respondents indicated that their age range was “not applicable” and 51 respondents reported they paid at least $100,000 in annual property taxes — suggesting roughly 50 commercial/industrial ratepayers. Another 27 paid $50,000 to $99,999 in property taxes, and 152 paid between $15,000 and $49,999. In total, ratepayers with annual property tax expenditures in excess of $15,000 equate to about 3 per cent of survey respondents.
Associations representing the commercial real estate and rental housing sectors were also among the 32 stakeholder groups the government consulted directly, including: the Building Owners and Managers Association (BOMA) of New Brunswick & Prince Edward Island; New Brunswick Apartment Owners Association; New Brunswick Non-Profit Housing Association; and New Brunswick Real Estate Association.
Highlighted survey responses skew toward the less sophisticated. Half the respondents say the property tax and assessment system is hard to understand and two-thirds say they are unclear how the property tax rate is set. Findings also hint at who was most motivated to participate in the voluntary exercise, with 80 per cent of respondents saying they found it either somewhat or very difficult to afford their property taxes.
One flagged issue of concern that does resonate for commercial/industrial ratepayers are quirky rules that prevent property owners from filing an appeal to question the appropriateness of an assigned property class or to argue that comparable properties have different (presumably lower) assessed values.
“There is currently no clear legal mechanism for property owners to appeal their assessments based on equity or a property’s classification. This is a common criticism from stakeholders,” the summary report states.
The spike protection mechanism (SPM) that’s now in place (beginning in 2025) for non-residential and non-owner-occupied residential properties also threatens to exacerbate complaints about inequitable treatment — at least for ratepayers who fall outside its protection. The mechanism, which was introduced for owner-occupied residential properties in 2013, holds assessment rate increases to no more than 10 per cent annually, with the exception of increases related to property improvements. This essentially increases the tax burden on non-protected properties since municipalities will need to raise their tax rates to balance out lost assessment.
“The SPM was one of the most frequently criticized features of the current system,” the summary report observes. “With the recent expansion of the SPM eligibility criteria, the SPM currently applies to over half of New Brunswick properties.”
Meanwhile, perhaps in contrast to what a similar consultation would uncover in Ontario, there was general satisfaction with New Brunswick’s annual assessment process, which updates assessed values annually based on the market value as of January 1 of the preceding year.
“Stakeholders highlighted the strength of the annual assessment cycle, which reflects growth and helps maintain trust in the system,” the report notes.
The New Brunswick government is now considering input gleaned from the consultation as it develops proposed reforms. These are promised to be released for further consultation in late December or early 2026.
“We will be working with partners, stakeholders and subject matter experts to explore potential policy and system changes, with a continued commitment to transparency, collaboration, and shared problem-solving,” the report advises. “Ongoing engagement with property owners, local government leaders and other stakeholders will help shape a system that is more fair, transparent, predictable and stable.”
“Our ultimate goal is to implement improvements that will benefit all New Brunswickers by the 2027 tax year,” maintains the provincial Local Government Minister, Aaron Kennedy.
