BILL 22

An Act Respecting Property Tax Affordability Measures

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

Assessment Act

1( 1) Section 15 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended

(a)  by striking out “15.7” and substituting “15.7, 15.71, 15.8”;

(b)  by striking out “15.71, 15.8,” and substituting “15.71, 15.72, 15.8,”.

1( 2) The heading “Assessment of eligible residential property in 2021 and subsequent years” preceding section 15.7 of the Act is amended by striking out “in 2021 and subsequent years” and substituting “in 2021 to 2024”.

1( 3) Subsection 15.7(2) of the Act is amended by striking out “in the year 2021 and every subsequent year” and substituting “in the years 2021 to 2024”.

1( 4) The Act is amended by adding after section 15.7 the following:

Assessment of eligible residential property in 2025 and subsequent years, other than in 2026

15.71( 1) In this section, “current year” means the year in which the assessment is made.

15.71( 2) This section applies in the year 2025 and subsequent years, other than in the year 2026, 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 2.1 of the Residential Property Tax Relief Act, other than a credit under subsections 2.1(3) and (7) of that Act.

15.71( 3) Subject to subsection (6), the amount of an assessment on real property referred to in subsection (2) for the current year is the lesser of the real and true value as of January 1 of the year previous to the current year and the value of K as calculated under subsection (4).

15.71( 4) The value of K is calculated as follows:

[(Lp – Mp) × 1.1] + P + N

where

Lp is the real and true value as of January 1 of the year immediately before the year previous to the current year of the portion of the real property for which the person is entitled to a credit under section 2.1 of the Residential Property Tax Relief Act;

Mp is the number calculated as follows:

V – W

where

V is the real and true value of the real property as of January 1 of the year immediately before the year previous to the current year; and

W is the amount of the assessment on the real property for the year immediately before the year previous to the current year;

P is the real and true value as of January 1 of the year previous to the current year 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 2.1 of the Residential Property Tax Relief Act; and

N is the real and true value as of January 1 of the year previous to the current year of the portion of the real property for which the person is not entitled to a credit under section 2.1 of the Residential Property Tax Relief Act.

15.71( 5) The minimum value of the assessment on real property under subsection (2) for the current year is $100.

15.71( 6) If real property referred to in subsection (2) is transferred in the current year, it shall be assessed in the year following the current year at its real and true value as of January 1 of the current year, except in the circumstances prescribed by regulation.

1( 5) The Act is amended by adding the following before section 15.8:

Assessment of real property in the year 2026

15.72( 1) This section applies in the year 2026 to real property that was assessed in the name of a person in the year 2025.

15.72( 2) For the year 2026, the amount of an assessment on real property referred to in subsection (1) is deemed to be, subject to subsection (3), the amount of the assessment for the real property in the year 2025.

15.72( 3) On the determination of the Director, the following real property shall be exempt from the application of the provisions of this section:

(a)  new construction on real property or improvements to a portion of the real property, whether a building permit or a development and building permit to undertake the new construction or improvements has been issued or not;

(b)  any real property that has been sold or transferred in the year 2025, except in the circumstances prescribed by regulation; and

(c)  any real property in respect of which the Director corrects or alters the amount of the assessment for real property for the year 2026 as a result of

( i) an error in any part of the assessment of the real property for the year 2025 or any previous year,

( ii) the real property being in whole or in part omitted from an assessment of real property for the year 2025 or any previous year,

( iii) a change in the actual and bona fide use of the real property or its classification, or

( iv) a decrease in the amount of an assessment of the real property.

15.72( 4) If an assessment notice was provided by the Director under section 21 with respect to real property referred to in subsection (1) in the year 2025, the Director shall prepare and mail an assessment notice for the year 2026 in accordance with section 21 for the real property indicating the same net real property assessment for taxation value as set out in the assessment notice provided by the Director in the year 2025 for the property, with any necessary modifications.

1( 6) The heading “Assessment of real property in 2025 and subsequent years” preceding section 15.8 of the Act is amended by striking out “in 2025 and subsequent years” and substituting “in 2025 and subsequent years, other than 2026”.

1( 7) Section 15.8 of the Act is amended

(a)  in subsection (2)

( i) in the portion preceding paragraph (a) by striking out “every subsequent year” and substituting “every subsequent year, other than in the year 2026,”;

( ii) in paragraph (f) by striking out “section 15.7” and substituting “section 15.7 or 15.71”;

(b)  in subsection (6) by striking out “the real and true value for the current year” and substituting “the real and true value as of January 1 of the year previous to the current year”;

(c)  in subsection (7) by striking out “January 1 of the year following the current year” and substituting “January 1 of the current year”.

1( 8) Subsection 40(1) of the Act is amended

(a)  by adding the following after paragraph (e.85):

(e.86)  prescribing the circumstances for the purposes of subsection 15.71(6);

(b)  by adding the following after paragraph (e.86):

(e.87)  prescribing the circumstances for the purposes of paragraph 15.72(3)(b);

Real Property Tax Act

2( 1) Section 10.1 of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended

(a)  in subsection (1) by repealing paragraph (a);

(b)  by adding the following after subsection (1):

10.1( 1.1) The real property referred to in subsection (1) shall meet the requirements prescribed by regulation.

(c)  in subsection (6) by repealing paragraph (a).

2( 2) Subsection 26(1) of the Act is amended by adding after paragraph (f.3) the following:

(f.31)  respecting requirements for the purposes of subsection 10.1(1.1);

CONSEQUENTIAL AMENDMENTS AND COMMENCEMENT

Regulation under the Assessment Act

3 Section 2.5 of New Brunswick Regulation 84-6 under the Assessment Act is amended

(a)  in the portion preceding paragraph (a) by striking out “and (8) and 15.7(6)” and substituting “and (8), 15.7(6), 15.71(6) and 15.8(7)”;

(b)  in the portion preceding paragraph (a) by striking out “of the Act” and substituting “and paragraph 15.72(3)(b) of the Act”. 

Regulation under the Real Property Tax Act

4 Section 7.1 of New Brunswick Regulation 84-210 under the Real Property Tax Act is amended by adding the following after subsection (1):

7.1( 1.1) For the purposes of subsection 10.1(1.1) of the Act, the real property shall not be owned by the Crown in right of Canada or by a local government.

Commencement

5( 1) Paragraph 1(1)(a), subsections 1(2) to (4), subsections 1(6) and (7) and paragraphs 1(8)(a) and 3(a) of this Act shall be deemed to have come into force on January 1, 2025.

5( 2) Sections 2 and 4 of this Act come into force on January 1, 2026.