BILL 5

An Act to Amend the Assessment Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 15 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended by striking out “15.3” and substituting “15.3, 15.4”.

2 The Act is amended by adding after section 15.3 the following:

Assessment of eligible residential property in 2011 and 2012

15.4(1) This section applies in the years 2011 and 2012 to real property that is assessed in the name of a person who is entitled to a credit in respect of that real property or a portion of it under section 2 or 2.1 of the Residential Property Tax Relief Act, other than a credit under subsections 2(1.1) and (1.2) and 2.1(3) and (7) of that Act.

15.4(2) For the year 2011 and subject to subsection (3), the amount of the assessment on real property referred to in subsection (1) is calculated as follows:

A + B + D + R

where

A               is the amount of the assessment for the year 2010 on the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

B               is the lesser of

(a) 0.03 × A, and

(b) Y × A,

where

Y               is the number calculated as follows:

(C - D - A)/A

where

C               is the real and true value as of January 1, 2011, of the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

D               is the real and true value as of January 1, 2011, of any new construction on and improvements to the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

R               is the real and true value as of January 1, 2011, of the portion of the real property for which the person is not entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act.

15.4(3) If real property referred to in subsection (1) is transferred in the year 2010, it shall be assessed at its real and true value as of January 1, 2011, except in the circumstances prescribed by regulation.

15.4(4) For the year 2012 and subject to subsection (5), the amount of the assessment on real property referred to in subsection (1) is calculated as follows:

E + F + H + S

where

E                is the amount of the assessment for the year 2011 on the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

F               is the lesser of

(a) 0.03 × E, and

(b) Z × E,

where

Z               is the number calculated as follows:

(G - H - C)/C

where

G               is the real and true value as of January 1, 2012, of the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

H               is the real and true value as of January 1, 2012, of any new construction on and improvements to the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

C               is the real and true value as of January 1, 2011, of the portion of the real property for which the person is entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act;

S               is the real and true value as of January 1, 2012, of the portion of the real property for which the person is not entitled to a credit under section 2 or 2.1 of the Residential Property Tax Relief Act.

15.4(5) If real property referred to in subsection (1) is transferred in the year 2011, it shall be assessed at its real and true value as of January 1, 2012, except in the circumstances prescribed by regulation.

3 Section 40 of the Act is amended

(a)  in subsection (1) by adding after paragraph (e.83) the following:

(e.84)  prescribing the circumstances for the purposes of subsections 15.4(3) and (5);

(b)  by adding after subsection (1.24) the following:

40(1.25) A regulation made under paragraph (1)(e.84) may be retroactive in its operation to January 1, 2011, or to any date after January 1, 2011.

CONSEQUENTIAL AMENDMENTS

Regulation under the Assessment Act

4 Subsection 4(1) of New Brunswick Regulation 84-6 under the Assessment Act is amended by adding after paragraph (d) the following:

(d.1)  the amount of real property assessment determined under section 15.4 of the Act, if applicable;

Regulation under the Real Property Tax Act

5 Subsection 3(3) of New Brunswick Regulation 84-210 under the Real Property Tax Act is amended by adding after paragraph (c) the following:

(c.1)  the amount of real property assessment determined under section 15.4 of the Assessment Act, if applicable;