Housing, tax and energy costs are prominent on the agenda as three Canadian provinces prepare for elections this month. Incumbent governments in British Columbia, New Brunswick and Saskatchewan have held office from seven to 17 years and are facing challengers with a range of proposals to shake up the status quo. In turn, sitting Premiers are offering some new perks in an effort to secure another term.

British Columbia will be first to the polls on October 19, with New Brunswick following two days later and Saskatchewan closing out the troika on October 28. Among opposition parties, the New Brunswick Liberals held the highest percentage of seats (33 per cent) in the previous legislative term, while the B.C. Conservatives (with just 9 per cent of previous seats) have emerged as strong contenders thus far during that provincial campaign. Saskatchewan’s opposition NDP held 23 per cent of seats in the previous term and is taking on the incumbent Saskatchewan Party, which has governed since 2007.

Looking at issues of particular interest for commercial real estate and facilities management, provincial governments have constitutional jurisdiction for most property-related functions, including planning and development, property assessment and taxes, building codes, health, safety and environmental compliance and regulatory oversight of real estate transactions, securities and electricity and natural gas supply. As well, provinces directly collect business and income taxes and offer a range of tax credits.

B.C. Conservatives promote measures to address housing costs and development barriers

In British Columbia, Conservative leader John Rustad is touting a non-refundable tax credit for rent, mortgage or strata fee costs that would eventually allow eligible renters and homeowners to reduce their taxable income for provincial purposes by up to $3,000 per month ($36,000 annually). That would be phased in in $500 increments over a four-year period with the initial threshold set at $1,500 per month ($18,000 annually) in 2026.

“The rebate will be equivalent to B.C.’s base tax bracket of 5.06 per cent, multiplied by eligible housing costs,” the Conservative platform states. “We are committed to helping people get ahead, and it starts with taking less money out of people’s pockets.”

Specifically for condo owners and strata corporations, the Conservatives are pledging to reduce insurance costs. That includes openness to mandating specific materials and installation techniques that insurers would view favourably in the B.C. building code and/or studying options for a publicly owned insurance program.

The Conservatives are calling on the federal government to reintroduce the offsets on taxable income that helped drive rental housing construction in the 1970s or, alternatively, promise to introduce a made-in-B.C. version of those incentives. Also aimed at developers, they intend to:

• repeal British Columbia’s step energy code and mandate for net-zero emissions;
• impose new time limits, requiring that rezoning and development permits are issued within six months and building permits within three months;
• make development cost charges payable on project completion rather than upfront; and
• establish a new tribunal to hear developers’ appeals.

To guard against unintended fallout on property valuation, they promise to protect existing ratepayers from jumps in assessed value due to rezoning and B.C. Assessment’s presumed highest and best use of a site.

The Conservatives would reduce the provincial small business tax rate to 1 per cent and then cut it further if provincial finances allow. They also promise to: review the provincial workplace insurance program’s $2.1 billion surplus with an eye to returning some or all of it to employers paying the premiums; recognize international credentials for in-demand skills; and address the province’s industrial land shortage.

New Brunswick Liberals pledge to cap rents and overhaul property tax assessment

In New Brunswick, Liberal leader Susan Holt says she would move quickly to cap residential rent increases to no more than 3 per cent for 2025. In future, allowable rent increases would be determined annually based on inflation and vacancy rates.

She promises to exempt new multi-unit housing and electricity from the provincial sale tax (PST), which is currently 10 per cent. Holt notes that Atlantic neighbours, Nova Scotia and Prince Edward Island, have already removed PST from new housing production and have doubled their per capita rate of housing starts compared to New Brunswick’s. Meanwhile, eliminating the PST on electricity is projected to save the average residential consumer about $192 per year, but would mean foregoing about $90 million in provincial revenue annually.

Also similar to efforts in Nova Scotia, the Liberals intend to introduce a new program to promote solar installations, along with plans to inject more funding into existing incentives for residential energy retrofits and free heat pumps.

An “overhaul of property taxes to ensure stability and fairness” is also promised. There are few other details of what that would entail, but Holt suggests work would begin in 2025 and be completed by 2026. “We need to get the right assessment values on the right properties and ensure that our property tax system isn’t making our affordability crisis worse,” she said, while highlighting the promise during a campaign announcement.

On the facilities management front, the Liberals would require all new public buildings, including schools, hospitals and long-term care homes, to comply with ASHRAE standard 241 for control of infectious aerosols, and promise to “add suitable air filtration and cooling units” in existing public buildings. They would also set a target for all provincial government buildings to be net-zero carbon emitters by 2035.

Turning to the outdoor environment, the Liberals propose to investigate alternatives to pesticide and herbicide applications, and to reevaluate the safety of glyphosate, a herbicide for grasses and broad-leafed weeds, employing New Brunswick-specific data.

Saskatchewan NDP promises rent control and low-interest start-up business loans

In Saskatchewan, the NDP opposition is promising: to invoke rent control for residential tenants; to reinstate direct rent payments to private landlords accommodating subsidized tenants; and to invest in capital upgrades of the province’s existing social housing stock.

“The Sask. Party’s end to direct rent payments for social service clients have led to a series of missed payments, evictions and increased homelessness,” maintains NDP leader Carla Beck. “This is about making sure that we have predictability and stability in our rental market for property owners and renters alike.”

The NDP also proposes a six-month moratorium on the provincial fuel tax, projected to save the average household $350. Following the lead of the Manitoba government, it would offer homeowners, small businesses and places of worship a rebate on the purchase of security equipment.

Additionally, the NDP plans to keep the small business tax at 1 per cent, halting the current government’s plan to push it up to 2 per cent next year. A new low-interest startup loan for small businesses with up to 10 employees would also be on offer.

As proposed, eligible enterprises could obtain up to $40,000 to help purchase land/buildings and equipment, support leasehold improvements or put toward other intangible assets and working capital costs. Loans would have a five-year term with interest set at the government’s cost of borrowing plus 1 per cent. Potential forgiveness of 25 per cent of loan value would be available based on the borrower’s repayment record.

Incumbent governments offer tax concessions

Incumbent governments in the three provinces are offering a variety of tax concessions. The New Brunswick Conservatives have promised a phased reduction to the provincial sales tax, taking it from the current 10 per cent down to 8 per cent by 2026; the B.C. NDP would exempt an additional $10,000 from taxable income for the purposes of provincial income tax; and the Saskatchewan Party pledges adjustments and increases to existing tax credits.

The latter would permanently entrench a currently temporary non-refundable tax credit for home renovations, allowing homeowners to claim up to $4,000 annually for upgrades to their principal residence and senior homeowners to claim up to $5,000 annually. A non-refundable tax credit for first-time homebuyers would increase from the current $1,050 to $1,575 for purchases as of October 1, 2024. Saskatchewan’s graduate retention program would provide a 20 per cent bump-up to the tax benefits that graduates of provincial post-secondary institutions can claim over a 10-year period if they continue to live and work in the province — maxing out at $24,000 over 10 years for graduates of four-year university programs.

If re-elected, the Saskatchewan Party also plans to introduce a new $5,000 rebate to help subsidize the cost of a Class 1 commercial driver’s licence. That’s to be paid out in $1,000 installments over five years, provided drivers continue to work and file taxes in Saskatchewan.

Federal carbon pricing is an issue in all three elections. Incumbent governments in New Brunswick and Saskatchewan are long-standing opponents and remain committed to fighting against the federally mandated levy on fossil fuels. The B.C. NDP has also said it will pull back on carbon pricing in sync with any future change federally.

The New Brunswick government held the slightest majority heading into this month’s elections, with just a one seat edge in the 49-member provincial assembly. The Saskatchewan government was most firmly ensconced, with 42 seats or 69 per cent of elected members.