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 “sections 15.1, 15.11, 15.2, 15.3, 15.4, 15.5, 15.6, 16, 17 and 17.1” and substituting “sections 15.1, 15.11, 15.2, 15.3, 15.4, 15.5, 15.6, 15.7, 16, 17 and 17.1”.

2 The heading “Assessment of eligible residential property in 2013 and subsequent years” preceding section 15.5 of the Act is repealed and the following is substituted: 

Assessment of eligible residential property in 2013, 2014, 2015, 2016, 2017, 2019 and 2020

3 Subsection 15.5(2) of the Act is repealed and the following is substituted: 

15.5( 2) This section applies in the years 2013, 2014, 2015, 2016, 2017, 2019 and 2020 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.

4 The Act is amended by adding the following after section 15.6: 

Assessment of eligible residential property in 2021 and subsequent years

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

15.7( 2) This section applies in the year 2021 and every subsequent year 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.

15.7( 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 for the current year and the value of K as calculated under subsection (4).

15.7( 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 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 previous to the current year, and

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

P is the real and true value as of January 1 of 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 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.

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

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

5 Paragraph 40(1)(e.85) of the Act is repealed and the following is substituted: 

e.85prescribing the circumstances for the purposes of subsections 15.5(7) and (8) and 15.7(6);

TRANSITIONAL PROVISIONS AND CONSEQUENTIAL AMENDMENT

Transitional provisions

6( 1) If the real property assessment list referred to in section 13 of the Assessment Act is prepared for 2021 before the coming into force of this Act and, as a result of the coming into force of this Act, an amendment to any portion of the real property assessment list is required, the Director shall make the amendment, provide to the person assessed an amended real property assessment notice and provide the local government or other taxing authority with the amendment.

6( 2) Every person who receives an amended real property assessment notice under subsection (1) shall have the right to have the real property assessment reviewed by the Director, and sections 25 to 37 of the Assessment Act apply with the necessary modifications.

Consequential amendment

7 Section 2.5 of New Brunswick Regulation 84-6 under the Assessment Act is amended by repealing the portion preceding paragraph (a) and substituting the following:

2.5 The circumstances for the purposes of subsections 15.4(3) and (5), 15.5(7) and (8) and 15.7(6) of the Act are as follows: