BILL 14

An Act Respecting the Assessment Act

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

Assessment Act

1( 1) Section 1 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended in the French version of the definition « biens résidentiels » by repealing paragraph c) and substituting the following:

c)  un immeuble d’appartements,

1( 2) Section 15 of the Act is amended by striking out “15.3,” and substituting “15.3, 15.31,”.

1( 3) The Act is amended by adding after section 15.3 the following:

Phase in of assessment on a multiunit residential building

15.31( 1) The following definitions apply in this section.

“multiunit residential building” means a residential building with two or more rental units that (immeuble résidentiel à logements multiples)

(a)  is or will be newly constructed,

(b)  is or will be undergoing major construction as defined in the regulations,

(c)  is or will be established by a change in the use of an existing building that is or will be undergoing major construction as defined in the regulations, or

(d)  has been vacant for at least two years and is or will be undergoing major construction as defined in the regulations.

“base year” means the year determined by the Director under subsection (5). (année de base)

15.31( 2) On or before December 31 of the year in which a building permit is issued to construct a multiunit residential building, the person in whose name the real property is or will be assessed may apply to the Director, on a form provided by the Director, for an approval to have the real property assessed in accordance with subsection (4).

15.31( 3) The Director shall approve an application if the applicant meets the criteria prescribed by regulation.

15.31( 4) If the Director approves an application, the amount of the assessment of the real property is

(a)  for the first year following the base year, 33% of the amount of the assessment on January 1 of the year following the base year,

(b)  for the second year following the base year, 66% of the amount of the assessment on January 1 of the second year following the base year, and

(c)  for the third year following the base year, 100% of the amount of the assessment on January 1 of the third year following the base year.

15.31( 5) The Director shall determine the base year for a multiunit residential building.

15.31( 6) After the Director approves an application, the person in whose name the real property is assessed shall

(a)  continue to meet the criteria prescribed by regulation, and

(b)  notify the Director immediately if the criteria prescribed by regulation are no longer being met.

15.31( 7) A decision of the Director to approve an application has effect from January 1 of the base year, and any changes required to be made in the real property assessment list as a result of the assessment shall be made as soon as possible after the decision is made.

15.31( 8) A decision of the Director to approve an application has effect until and including December 31 of the earliest of the following years:

(a)  the third year following the base year;

(b)  the year following the year in which the multiunit residential building is sold; and

(c)  the year in which the criteria referred to in subsection (3) are no longer being met.

15.31( 9) An application with respect to a multiunit residential building shall not be made if a previous approval with respect to the multiunit residential building is in effect.

15.31( 10) The Director’s decision to approve or to refuse to approve an application is final and may not be questioned or reviewed in any court.

15.31( 11) The Director’s determination of the base year is final and may not be questioned or reviewed in any court.

15.31( 12) Sections 25, 27, 28 and 37 do not apply to

(a)  the Director’s decision to approve or to refuse to approve an application, or

(b)  the Director’s determination of the base year.

15.31( 13) Sections 25, 27, 28 and 37 apply with the necessary modifications to the January 1 assessment amounts referred to in paragraphs (4)(a) to (c) representing the real and true value of the property.

15.31( 14) A person who fails to notify the Director under paragraph (6)(b) commits an offence punishable under Part 2 of the Provincial Offences Procedure Act as a category F offence.

1( 4) Subsection 40(1) of the Act is amended by adding after paragraph (e.83) the following:

(e.831)  defining “major construction” for the purposes of paragraph (b) of the definition “multiunit residential building” in subsection 15.31(1);

(e.832)  defining “major construction” for the purposes of paragraph (c) of the definition “multiunit residential building” in subsection 15.31(1);

(e.833)  defining “major construction” for the purposes of paragraph (d) of the definition “multiunit residential building” in subsection 15.31(1);

(e.834)  prescribing criteria for the purposes of subsection 15.31(3);

Regulation under the Assessment Act

2 New Brunswick Regulation 84-6 under the Assessment Act is amended by adding after section 2.4 the following:

2.41( 1) For the purposes of paragraph (b) of the definition “multiunit residential building” in subsection 15.31(1) of the Act, “major construction” means a construction that

(a)  costs at least 20% of the amount of the assessment of the real property on January 1 of the base year, and

(b)  creates at least one additional rental unit.

2.41( 2) For the purposes of paragraphs (c) and (d) of the definition “multiunit residential building” in subsection 15.31(1) of the Act, “major construction” means a construction that costs at least 20% of the amount of the assessment of the real property on January 1 of the base year.

2.41( 3) For the purposes of subsection 15.31(3) of the Act, the applicant shall meet the following criteria:

(a)  the applicant has applied for a building permit to construct a multiunit residential building on or after January 1, 2022;

(b)  the applicant has been issued a building permit to construct a multiunit residential building;

(c)  the applicant has or will commence construction of the multiunit residential building on or before December 31 of the year in which the permit was issued; and

(d)  the applicant certifies that the person in whose name the real property is or will be assessed does not reside or will not reside in the multiunit residential building.