The New Brunswick government is proposing a property tax reform that includes municipal tax rates and valuation freezes to stabilize homeowner bills [1, 2].
This initiative aims to provide financial predictability for residents facing volatile property assessments while addressing the provincial government's ongoing budget constraints [3, 5].
Premier Susan Holt said the government will consult with New Brunswickers to develop a fair property tax reform [3]. The plan involves the introduction of a municipal tax rate and the freezing of assessment values to prevent sudden spikes in tax bills [1, 2].
According to a spokesperson for the New Brunswick Department of Finance, 90 percent of homeowners will benefit from the property tax freeze [4]. This freeze applies to the 2024 calendar year [4].
Public consultations are currently underway to refine the proposal. The government expects the full reform to be implemented by 2027 [3].
The need for reform is particularly evident in urban centers. In Moncton, Fredericton, and Saint John, rental properties have become some of the most heavily taxed buildings in the province [2]. For example, the Three Sisters building in Moncton, constructed in June 2024, reflects the high costs associated with new developments under the current system [2].
By shifting toward a municipal tax rate, the province seeks to decouple the direct link between rapid market value increases and immediate tax hikes. This approach is designed to ensure that the tax burden remains sustainable for both residential owners and commercial developers [1, 3].
“"90 percent of homeowners will benefit from the property tax freeze."”
The proposed shift toward municipal tax rates and valuation freezes represents a move toward greater fiscal stability for homeowners. By capping the impact of rising real estate valuations, the province is attempting to mitigate the risk of 'tax shock' for residents while maintaining a steady revenue stream for municipal services during a period of provincial budget pressure.
