Key Takeaways:
- New Brunswick business and apartment building owners may be eligible for additional property tax relief.
- David Coon was concerned about yet another short-term solution to the pressures of rising living costs.
Business and apartment building owners in New Brunswick may be eligible for further property tax relief.
The provincial government introduced a temporary surge protection mechanism Friday morning to prevent skyrocketing property values from dramatically boosting a property tax payment.
“I’m hopeful that the two years of spike protection will pave the way for everyone to have spike protection for the rest of their lives,” New Brunswick Finance Minister Ernie Steeves told reporters.
Later, Steeves clarified that his statement was merely his opinion, not a cabinet decision.
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For the time being, the relief will be available for non-residential assets and apartment complexes with four or more units with annual assessment rises of more than 10% for the taxation years 2022 and 2023.
For homeowners, a similar surge protection system was established in 2013.
The Green Party leader, David Coon, was concerned about another temporary measure to relieve the pressure generated by growing living costs.
Coon recently proposed that the province’s 3.8 percent rent restriction be extended over several years, with legislation allowing it to be reviewed and removed.
“With these one-time-only items, he’s scattering breadcrumbs.” There will be a rent cap for one year, and for two years, there will be a rent spike protection. “Thoughtful policy is required,” Coon remarked.
Providing property tax relief on commercial properties, according to Liberal MLA Jacques LeBlanc, is a good start, but it should not be done temporarily.
LeBlanc is concerned that if the surge protection mechanism remains in its current form, it may cause greater harm to tenants in the short run.
“They have to pay the lion’s share of the price this year, and they’ll only get a credit next year,” he explained.
The adoption of two-year surge protection for landlords, while the rent cap is only in place for one year, is a reflection of unfairness, according to LeBlanc.
According to a government press release, the relief program will save around $10 million in provincial and local property taxes for apartment buildings with four or more units and $4 million for non-residential properties.
Source: Global News
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