More than 40K N.B. homeowners face another wave of property tax increases in 2025
Provincial rules preventing municipalities from targeting tax help to homeowners remain in force
New Brunswick homeowners by the tens of thousands are facing property tax increases in 2025, and New Brunswick municipalities remain without powers promised to them two elections ago that could help slow or even stop the surge.
Andrew Black, president of the Union of the Municipalities of New Brunswick, said hope has faded that municipal financial reforms — first pledged by Blaine Higgs in 2018 — will arrive before a new wave of property tax increases wash over homeowners in large numbers again next year.
"That's unrealistic, unfortunately," said Black, in an interview, about the chances New Brunswick might implement promised municipal financial reforms this year.
"Municipalities would like that to be in place before the start of the new year but it's unrealistic in the conversation and the process that's going on now."
Blaine
Higgs promised in the 2018 election that municipalities would be given
'greater control over their own affairs, including greater powers over
taxation.' That didn't happen and won't before another wave of property
tax increases hit New Brunswick homeowners in 2025. (Catherine Allard/Radio-Canada)
Communities all over New Brunswick have experienced record increases in property values over the last three years, mostly on homes and apartment buildings.
That has led to rising assessments on those properties, and municipalities are having difficulty preventing much of those increases from forcing taxes higher.
Fifth Street in Moncton is typical.
Rising property values in the area neighbourhoods caused tax assessments on the street to jump an average of 18 per cent in 2022, 20 per cent in 2023 and another 18 per cent this year.
Robert Caverly bought a house on Fifth Street in 2021, but in June he sold it and moved across the provincial border to a spot near Amherst, Nova Scotia. He cites rising residential property taxes as a major reason.
"We were actually planning on staying in Moncton," said Caverly in an interview.
"But it's like we decided, you know, with the increase in the taxes, that was a big thing."
At the time Caverly bought his Moncton house it carried a municipal tax bill of $2,060, based on an assessed value of $123,400. This year the assessment was up to $316,700, and the bill he received had nearly doubled to $3,947.
Robert
Caverly sold his house in Moncton this year and moved across the border
to Nova Scotia. He said rising property taxes were a major reason
behind the decision. (Submitted by Robert Caverly)
About $400 of the tax increase was caused by Caverly building a garage, valued at $28,000, on the property.
But most of the increase, more than $1,400 worth, was caused by the tax assessment on the house itself escalating rapidly, and residential property tax rates in the city of Moncton are not falling fast enough to compensate.
More concerning for Caverly was that the increases were not going to stop.
New Brunswick has a rule that unless a house is substantially renovated or changes owners, property taxes on large assessment increases have to be applied gradually, by a maximum of 10 per cent per year.
In Caverly's case that rule meant $43,097 of the $193,300 increase in the taxable value of his Moncton house, over three years, was sheltered from being taxed in 2024.
But in 2025 and 2026, had he kept the house, those protections would expire and, at current Moncton property tax rates, an additional $621 in tax would be applied to the house, potentially raising the annual tax bill to more than $4,500.
Houses
on Habour Terrace in Saint John were among three dozen in their
neighbourhood to receive assessment increases above 50 per cent this
year. Most of the property tax increases that will come with that
change will be levied on a delay. (Robert Jones/CBC)
For Caverly, the prospect of five straight years of compounding tax increases was too much.
"What additional services were they providing to have that kind of increase?" he asks.
"That was just ridiculous."
Large assessment increases, causing delayed property tax increases a year or two after assessments have risen, is something that Black is worried most homeowners are not prepared for.
"I would say, based on my personal experience and who I've spoken with in my municipality, I think that [most] people don't understand." said Black.
"Some people do understand, but there's a lot of people who don't. Most of the time people are shocked by that."
All
26 houses on Knox Drive in Moncton are facing property tax increases in
2025, 2026 and 2027 unless the city can find a way to cut property tax
rates in the city. (Google)
Property records show that assessments on residential properties in Moncton have risen steeply in virtually all neighbourhoods, and there are now more than 17,000 houses in the city on a time delay for property tax increases in 2025.
On many Moncton streets, like Knox Drive, every house is in that situation.
The 26 homes on Knox have had their property taxes increase by about $400 over the last three years because of assessment increases, but that is a fraction of what is coming.
Unless Moncton drops its tax rate further, homeowners on Knox Drive are facing additional average increases of $1,000 each over the next three years because of assessment increases.
And it is not just Moncton.
In Fredericton, more than 11,000 homes are facing their own 2025 property tax increases for similar reasons. In Dieppe, at least another 6,000 houses are in that position, and in Saint John it's more than 14,000.
Jerry
Iwanus calls New Brunswick's property assessment and tax system
'broken.' He says municipalities need to dramatically lower tax rates on
houses when assessments on houses are surging, and they should be given
the power to do that. (Submitted by Jerry Iwanus)
Jerry Iwanus says what is happening with property assessments and taxes on homes in New Brunswick proves the system needs major reforms.
Iwanus is a former property assessor who has worked in multiple provinces, including New Brunswick, and he recently wrote a book, called Taxing New Brunswick, that offers advice on how to challenge a property assessment in the province.
Iwanus is adamant there is no reason for rising assessments on homes to cause tax increases for homeowners.
"There is no way to sugar coat this: the property assessment and tax system in New Brunswick is broken," he writes in his book.
In an interview, Iwanus said if property assessments on houses and apartments buildings are surging, municipalities need to have the freedom to drop tax rates on those buildings. That, he said, would fix the problem of runaway property tax bills, in a way that phasing in large increases only delays.
"Overall, if residential assessments increase by 40 per cent, then you lower the tax rate by 40 per cent. That's revenue neutral," said Iwanus.
Saint
John cut tax rates on industrial properties in 2024 even though it
didn't want to. The reduction was required to allow for a residential
tax cut and comply with provincial rules that forbid houses from being
charged a tax rate less than 58.8 per cent of what businesses pay. (Robert Jones/CBC)
"The system needs to be changed to include different tax rates for different property classes. So the municipalities actually have some flexibility in that regard."
In Canada most municipalities have the power to neutralize the cost of rising assessments on houses by cutting property tax rates that apply to houses.
But in New Brunswick, property tax rates on houses are connected with tax rates on commercial, government and industrial properties and are difficult to adjust independently.
Currently, New Brunswick municipalities are not allowed to set property tax rates on houses any lower than 58.8 per cent of what business properties are taxed in their community.
Last year that rule forced Saint John city council to cut property tax rates on commercial, industrial and government properties in order to lower tax rates for homeowners.
In the end, only about $2.1 million of a $3.8 million tax cut passed by the city made its way to houses and apartment buildings because of that.
Saint
John finance commissioner Kevin Fudge told councillors last year
provincial property tax rules were limiting the city's ability to direct
property tax savings where it wanted. (CBC)
Saint John finance commissioner Kevin Fudge told councillors during budget deliberations the city was powerless to direct tax cuts where it wanted.
"We would really like to have no restrictions and set what we want to set," Fudge told councillors at the meeting.
"We would like the ability to set as many classes as we want and set the rates the way we want, based on what works for the City of Saint John."
That is close to what was promised during the 2018 provincial election. Progressive Conservatives pledged to "empower municipalities to have greater control over their own affairs, including greater powers over taxation."
After winning that election, a second commitment was made to have financial reforms in place by January 2025 but that time table has been abandoned.
In an email, a spokesperson for the province said talks with municipalities about financial reforms are ongoing but that any changes that come will be for the 2026 calendar year.
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Reply to Ron parker
Reply to Ron parker
Surprise Surprise Surprise
Guess who the former Mayor is running for
https://www.cbc.ca/news/canada/new-brunswick/john-higham-sackville-mayor-1.3578741NDP gets help from democracy expert
CBC News · Posted: Jan 09, 2006 4:23 PM AST
An international expert on democracy has flown all the way from Egypt to help NDP candidate John Carty campaign in Fredericton.
Dominic Cardy is with a group called The National Democratic Institute. Its members include such people as former U.S. President Jimmy Carter. The group's mission is to teach democratic values and spread democracy around the world.
Cardy has taught about democracy in Algeria, Bangladesh, and Cambodia during the past few years. When he heard his friend John Carty was running for office back in his home town of Fredericton, he hopped on a plane.
"It was a strange experience," Cardy said. "One evening I was watching the sun go down over the pyramids, and the next evening watched it go down over Fredericton airport as I came into land."
Cardy is no relation to the NDP candidate. But he loves elections and loves getting people pumped up about democracy.
Carty the candidate is running against federal Indian Affairs Minister Andy Scott, Conservative Pat Lynch, Green candidate Philip Duchastel and independent David Amos. The riding has sent Scott to Ottawa for the last four elections, despite the best efforts of the other parties.
Cardy says he doesn't care how tough the race he just wants people to participate in the process. "People have forgotten how incredibly precious these gifts that our ancestors fought for are and were just giving them away. It makes me furious when I talk to people and people just say 'ah there's no point in voting.'"
After election day, Dominic Cardy is flying back home to his wife in Kathmandu, Nepal. He hopes to leave behind a new Member of Parliament for Fredericton, his friend John Carty for the NDP.
Reply to David Wilson
Dominic Cardy is in his last days speaking for Fredericton West-Hanwell Correct?
Reply to David Wilson
votes percent of total cast
19 649 41.8
16 292 34.7
9 988 21.2
884 1.9
198 0.4
Reply to Robert Brannen
Reply to David Wilson
But in New Brunswick, property tax rates on houses are connected with tax rates on commercial, government and industrial properties and are difficult to adjust independently.
We need a Property Tax Election! 🥊🥊
The NB government are a bunch of "taxaholics".
Reply to David Wilson
I suspect Cardy may be the next leader of the liberals . Could be Federal , could be provincial . Especially if he suffers a huge defeat . Liberal material 101 .
David Wilson
Reply to David Amos
Why do you think they ultimately seek to privatize everything?
Ronald Miller
Reply to David Wilson
Facts say otherwise but sure, let's play pretend. Are property taxes something new, please explain, if you can.
Max Ruby
Reply to David Wilson
Revolving door, when they get voted out they go work for the private sector they helped with privatization.
Ronald Miller
Reply to David Wilson
Tell us all how the onslaught of taxes Liberals put in help the less fortunate, I can't wait for this one.
David Wilson
Reply to Max Ruby
Absolutely.
David Amos
Reply to Lou Bell
Everybody knows your old buddy is now the leader of a federal party
David Wilson
Reply to Ronald Miller
Making home ownership unaffordable for those of lower to average income widens the wealth gap.
David Amos
Reply to David Wilson
Methinks you should know that I don't fall for trick questions N'esy Pas?
Ronald Miller
Reply to Max Ruby
Gallant went to work in Ontario while still acting as an MLA, you mean like that?
serge montague
Reply to David Wilson
They don't seek to privitize everything , you haven't figured that out yet ?
serge montague
Reply to Max Ruby
Yes no former libs or ndp ever go work for, and help, the private sector...too funny
serge montague
Reply to David Wilson
unaffordable ownership is the fault of Conservatives?
Ronald Miller
Reply to David Wilson
How did Higgs alone make ownership unaffordable. If this is all Higgs fault, why are the feds adjusting mortgage rules, keep trying.
David Wilson
Reply to David Amos
How was that a trick question?
David Amos
Content Deactivated
Reply to David Wilson
Why play dumb?
David Wilson
Reply to Ronald Miller
You mean the one where the rebate results in increased income?
David Wilson
Reply to serge montague
Of course they do.
Ronald Miller
Reply to David Wilson
Rebate.... increased income? What?
Reply to David Wilson
Reply to serge montague
Reply to serge montague
Content Deactivated
Reply to Lou Bell
Interesting ! Mr. Caverly paid 123 thousand for his home ., paid 2000 dollars in property taxes . Added a 28 thousand dollar garage and the house changed in value by 2.5 TIMES !! And property taxes increased by just under 2 times the value . AS ONE WOULD EXPECT ! Bet he sold it for probably even more than the 316,000 !!! I'd bet he sold for the profit , nothing less !!!
Lou Bell
Reply to Lou Bell
Obviously he reaped all the benefits of the huge increased value of the home , just didn't want to pay what one would expect !
Max Ruby
Reply to Lou Bell
Read more close, no offense: At the time Caverly bought his Moncton house it "carried" a municipal tax bill of $2,060, based on an assessed value of $123,400 (previous owners may have bought it 20 years ago for $40,000). We don't know what he paid but it sure wasn't $123,400 assessment, double that.
Max Ruby
Reply to Lou Bell
Stop, read my comment...
David Wilson
Reply to Lou Bell
If the goal is to force people to sell their hones them you hit the nail on the head
Lou Bell
Reply to Max Ruby
Oh , so he paid a tax bill on a highly UNDERASSESSED house ! Whatever he paid for it , the previous owners reaped huge benefits from it . And then Mr. Caverly did the same thing , other than he was going to have to pay the tax on the REAL price of what the assessed value is . And so , Mr. Caverly is one of the outside investors who came in , paid a much higher price , then sold it and made lots of money off it ! Sound familiar ???
Max Ruby
Reply to Lou Bell
Yes. He got buyers remorse, the sellers are the winners, the rest of us that still live here pay the biggest price. The previous owner tax bill caps at 10% per year. Mr. Caverly got stuck with the bag all at once AND he built a garage.
Lou Bell
Reply to David Wilson
No one forced anyone to sell their house . Read the story . Mr. Caverly bought the house in 2021 . Nothing on what he paid for it , or what he sold it for , . All we see is a highly underassessed house sold twice for more than 2.5 times it's assessed value and the peole on the left are complaining as if someone lost on all of this ! This is what they have complined about for the last 4 years , only that these same people shoulod NOT be allowed to reap those benefits ! So what is it ????
Max Ruby
Reply to David Wilson
You are right. Older home down my road that sold for just under $200,000 about 10 years ago sold in 2022 for $600,000, it set the pace, a few more people sold out, some of the homes you don't see cars or people. The rest of us are now paying and we not rich.
Max Ruby
Reply to Lou Bell
Mr. Claverly neighbours that didn't sell are going to be paying way higher property taxes. Needs to be grandfather clause, if you in the same home for over 10 years lower the frigging property taxes or more will be forced to sell and leave, snake eats its own tail.
Lou Bell
Reply to David Wilson
Laughable ! They didn't sell their homes because they had to , they sold for the 300 to 500 percent profits !!
David Wilson
Reply to Lou Bell
Your simple mathematics fail to consider changes in income, changes in the cost of living etc.... so again, if your goal is to force people to sell their homes, you are doing very well.
David Wilson
Reply to Lou Bell
That is a bold and baseless assumption.
Robert Brannen
Reply to Lou Bell
Perhaps they only got a 45 % gain, minus any expenses incurred related to the sale. On-line resources which enable checking such things are available.
Robert Brannen
Reply to Lou Bell
I forgot the garage he added to the property; so, all and all he likely made a gain of about 23 % after expenses related to the sale of the property are added in.
David Amos
Reply to Max Ruby
The banksters have been creating another housing bubble south of the 49th for years No cars and no people tell me its now happening here as well
This should not even be news. Crazy
David Amos
Reply to Shawn Tabor
You can't vote for me anymore
Shawn Tabor
Greed, has fueled all of this, and so much more, the way it works and after a while someone has to pay. Dress it up, spin it, anyway that you want. This is the way it works, but big cracks are finally showing up. Everyone knew about this, now you will understand better. Oh there is more on its way. . Going to see things happen or in the near future. Positive note is you will see a lot of wealth the most in history transferred from the baby boomers down to their offspring. Good luck, heads up. Stick on the ice.
David Amos
Reply to Shawn Tabor
"Positive note is you will see a lot of wealth the most in history transferred from the baby boomers down to their offspring."
What if the economy crashes in the meantime?
Toby Tolly
I'm seeing lots of city projects in Freddy that I classify as
'they have too much tax money'
Shawn Tabor
Reply to Toby Tolly
How do they justify this, still lots and lots of money out there. Amazing isn’t it lol
Shawn Tabor
Reply to Toby Tolly
And people put their faith in Politicians or a party. I think they might call that ( just business). We are on a need to know basis, and there is no need of us knowing Taxes and death, Yee Haa
David Amos
Reply to Shawn Tabor
Remember when I ran in Fat Fred City?
Reply to David Amos
David Amos
Reply to Shawn Tabor
Vote 🇦 🇧 🇨❗
David Amos
Should I run against Higgy?
Higgs doubles down on asylum seekers rhetoric in meeting with Fredericton council
City's mayor calls comments 'offensive'
Fredericton council's meeting with provincial party leaders was supposed to focus on municipal issues, but comments by the premier about asylum seekers lit fireworks at city hall Monday night.
While leaders from all three political parties represented in the legislature spoke at the special event, Progressive Conservative Leader Blaine Higgs' comments about asylum seekers and their purported impact on the province's health-care system drew a sharp rebuke from Fredericton Mayor Kate Rogers.
In a question and answer session after Higgs's speech, Rogers said the percentage of Fredericton residents without a primary care provider had jumped from 14 per cent to 33 per cent in four years, and she asked Higgs what the government was doing to attract more doctors.
"The increase in population would've had a huge impact on the number of patients that don't have family physicians. That's why with additional asylum seekers that would've added to your list if they moved here," said Higgs.
Fredericton Mayor Kate Rogers called Higgs's comments about asylum seekers 'offensive.' (Aidan Cox/CBC)
"I wish you would not deflect and constantly refer to asylum seekers. I find that offensive, personally," said Rogers.
"Well you may, your worship. However, the issue is real," said Higgs.
Last week in Moncton, the premier told an audience that Ottawa was "considering a plan" to send 4,600 asylum seekers to the province.
Federal Immigration Minister Marc Miller later called those comments "largely fictitious."
Higgs has also said asylum seekers are linked to the lack of housing in the province.
He said that while more housing was being built, the city would not be able to deal with a further influx of asylum seekers.
"You think that Fredericton could handle potentially 1,000 more people with no federal supports in place, no provincial supports in place?" said Higgs.
He did not address the impact on housing availability of people arriving through other immigration processes, or from Canadian residents moving to New Brunswick from other parts of the country.
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