Property Taxes In New Brunswick: What's The Deal?

Property taxes in New Brunswick are made up of two components: a municipal tax and a provincial tax. The former is used to fund municipal expenditures, including local infrastructure, while the latter is used to fund services such as education and healthcare. The provincial government assesses the value of all real property within the province annually for tax purposes. The Finance and Treasury Board is responsible for billing and collecting all property taxes, including those levied by municipalities and local governments.

Provincial and municipal property tax rates

Property taxes in New Brunswick are based on the value of the property and are paid by property owners. The taxes are used to fund services that benefit the community, such as water and sewer improvement projects, fire protection, law enforcement, road and highway improvement, and libraries.

Property tax in New Brunswick consists of a local (municipal) tax determined by the municipality and a provincial tax set by the provincial government. The local tax rate varies by location, while the provincial tax rate is uniform across the province.

The provincial government of New Brunswick sets the provincial property tax rates for different categories of property under the Real Property Tax Act. Effective January 1, 2023, the provincial rate on residential housing is $0.5617 per $100 of valuation, while the rate for other residential property is $1.0345. Non-residential property is subject to a provincial rate of $1.8560 per $100 of assessment. There is an additional provincial rate of $0.0194 per $100 of valuation charged to all taxpayers to offset the cost of assessing properties.

The municipal tax rate, on the other hand, is determined by each municipality's budget needs. Municipalities consider their expected spending and revenue and use property taxes to make up the difference. The specific municipal property tax rate for a given year depends on the municipality's budget and its total assessment base (tax base). If more tax revenue is required, the tax rate will increase, and vice versa.

In New Brunswick, non-residential property is taxed at a rate of one and one-half times the rate of residential property. The rate varies annually and is determined by the Department of Environment and Local Government in collaboration with municipalities and rural communities.

Property owners in New Brunswick should be aware of other rates and taxes that may apply to their properties, such as special levies in certain Local Service Districts (LSDs) and rural communities, and additional taxes on properties that are neither owner-occupied nor exempt under the Assessment Act.

Property tax relief programs

The provincial government of New Brunswick offers several property tax relief programs for its residents. Here are some of the key programs:

Residential Property Tax Credit

The Residential Property Tax Credit is available for those who own and occupy their principal residence in New Brunswick. A principal residence is defined as the place where an individual eats and sleeps most of the time. This tax credit is applied against the provincial portion of the property tax, while the municipal property tax must still be paid in full. It is important to note that you only need to apply for this credit once, and you will continue to receive it as long as you own and occupy the property.

Property Tax Allowance

The Property Tax Allowance is designed to provide tax relief to low-income property owners in New Brunswick. To be eligible, individuals must own their property, have it as their principal residence, and receive the Residential Property Tax Credit. The rebate amount varies depending on the combined taxable income of the applicant and their spouse. For instance, a combined taxable income of less than $22,000 can qualify for a rebate of up to $300.

Property Tax Deferral Program for Seniors

This program assists eligible seniors in New Brunswick by allowing them to defer the annual increase in property taxes on their principal residence. Deferred property taxes and interest accrue as a lien against the property and become payable to the province when the property is sold or transferred.

Housing Development Incentive Program

The provincial government has implemented the Housing Development Incentive Program to encourage the development of new rental units. This program provides incentives for property owners who maintain a principal residence in New Brunswick.

For more detailed information about these programs and to determine your eligibility, it is recommended to contact the relevant government departments or refer to the official websites of the Government of New Brunswick and Service New Brunswick.

Property tax payment methods

• Online Payments: Property owners in New Brunswick can pay their property taxes online through the City of New Brunswick website. This option offers convenience and ease of payment from the comfort of your home.
• In-Person Payments: If you prefer a more traditional approach, you can pay your property taxes in person by visiting the City Hall. This option may be suitable if you want to make the payment personally or have specific queries to discuss.
• Payments by Check: Another option is to send a check for your property tax payment through postal mail. Remember to include the property account number on the check and allow sufficient time for mailing and processing.
• AUTOPAY: For added convenience, you can set up AUTOPAY through your bank's online bill-pay service. This option automatically pays your property taxes on time, ensuring you never miss a payment.

It is important to note that the availability of these payment methods may vary depending on your specific location in New Brunswick and the guidelines provided by the local government or financial institution. Additionally, there may be other payment methods accepted in certain circumstances, such as payments through the Pay Simply website or the use of credit cards, but additional fees may apply for such services.

Property tax exemptions

In New Brunswick, New Jersey, some properties are exempt from local property taxes. This includes most hospital, school, and government properties. Additionally, properties owned by many religious and non-profit organizations are also exempt.

In the Township of North Brunswick, New Jersey, there are property tax exemptions for certain veterans or their surviving spouses. To qualify, individuals must be honorably discharged US Armed Forces war veterans or the unmarried surviving spouse of such a war veteran. The veteran or serviceperson must have been a legal resident of New Jersey, and the surviving spouse must be a legal resident of New Jersey as well. The individual must be a property owner and permanent resident in the dwelling, and the disability must be certified as 100% permanent and total by the United States Veterans Administration.

The State of Maine and the Town of Brunswick offer several property tax relief programs, including:

• Homestead Property Tax Exemption: This program provides tax relief for individuals who have owned and occupied homestead property in Maine as their permanent residence for at least 12 months as of April 1.
• Veteran Property Tax Exemption: Veterans who served during a recognized war period and meet certain age or disability requirements are eligible for this exemption.
• Legally Blind Exemption: Homeowners who are legally blind as determined by a licensed medical professional are eligible for this exemption.
• Renewable Energy Investment Exemption: This exemption applies to eligible renewable energy equipment, such as solar panels.
• Property of Institutions and Organizations: Certain charitable, benevolent, literary, and scientific institutions may be eligible for tax exemption on qualified properties.
• Senior Tax Assistance Program: This program provides financial assistance to renters and property taxpayers who have resided in Brunswick for at least 10 years and are 65 or older.
• Property Tax Deferral: The State Property Tax Deferral Program offers loan assistance to individuals who are 65 or older or permanently disabled and cannot afford to pay their property taxes.

Property tax penalties

In New Brunswick, property tax penalties are incurred when a property owner fails to make their tax payments on time. The province of New Brunswick takes the unpaid property tax debt very seriously and has implemented a system to ensure the collection of these taxes.

The Real Property Tax Act authorises the province to recover the outstanding balance of property taxes, penalties, and any other associated fees through a tax sale if a property tax account remains unpaid for more than a year. Before proceeding with a tax sale, property owners are given multiple opportunities to resolve their tax arrears and are offered payment arrangement options.

Tax notices with updated balances are sent out annually, followed by a Notice of Tax Sale, which informs the property owner of the possible tax sale action and advises them to contact Central Collection Services to address the issue. Property owners also receive separate collection letters that offer payment arrangement options to prevent the property from being sold at a tax sale.

If the property owner cannot be located and served, an Expression of Interest Notice is posted in accordance with the Act. This notice is advertised in local newspapers, the Royal Gazette, and on a sign physically placed at the property. If the Department of Finance and Treasury Board is unable to obtain the necessary information and taxes remain unpaid, the property may be subject to a tax sale.

The EPP (Equalized Payment Plan) is a voluntary payment plan that allows eligible homeowners to pay their annual property tax in twelve equal monthly instalments without incurring a penalty. However, if a property owner on the EPP cancels their participation for any reason, including the sale of the property, all unpaid taxes become due and are subject to interest and penalties.

Frequently asked questions