FREDERICTON (GNB) – Legislation was introduced today to amend the Real Property Tax Act to return provincial property taxes for New Brunswick businesses to the 2012 rate to help improve the province’s fiscal situation.
Property taxes for businesses will return to a rate of $2.1860 per $100 of assessment in 2015 and in subsequent taxation years.
“We simply cannot afford to miss out on property tax revenue at this time,” Finance Minister Roger Melanson said. “As a government, we must make difficult decisions in order to address the deficit, provide important social programs and move New Brunswick forward.”
Melanson said the government made a commitment to cancel the previous property tax break for businesses because it is the right decision at this time and in the best long-term interests of the province.
The change will generate an estimated $30 million in additional property tax revenue for the province in 2015-16 and $36 million in 2016-17.
“There is no hiding the fact that our province is facing a revenue challenge,” said Melanson. “This additional revenue will help us get our financial situation on the right track.”
The amendment is expected to take effect on Jan. 1, 2015 prior to the setting of property tax rates in the coming year.