Bill 49 - An Act Respecting Property Tax Reform

BILL 49

An Act Respecting Property Tax Reform

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

Assessment Act

1( 1) Section 21 of the Assessment Act, chapter A-14 of the Revised Statutes, 1973, is amended by adding after subsection (1) the following:

21( 1.001) A real property assessment notice may be made available electronically.

1( 2) Subsection 27(2) of the Act is repealed and the following is substituted:

27( 2) An appeal under subsection (1) shall be taken

(a) within 30 days after the mailing of the notice referred to in subsection 25(4), or

(b) if the Director has not notified the person of the Director’s decision under subsection 25(4) within 90 days after the date of mailing of the request for review of assessment, within 30 days after the expiry of the 90-day period.

1( 3) Section 28 of the Act is amended by striking out “Within 21 days after” and substituting “Within 30 days after”.

Community Funding Act

2( 1) The Community Funding Act, chapter 40, s.1, of the Acts of New Brunswick, 2022, is amended by adding after section 18 the following:

Grants to local governments where heavy industrial properties are located

18.1( 1) The Minister may provide a grant in an amount to be determined in accordance with the regulations to a local government where a heavy industrial property is located if the local government meets the requirements prescribed by regulation.

18.1( 2) On or before the first business day of each month, the Minister shall pay to an eligible local government one-twelfth of the amount of the grant referred to in subsection (1).

2( 2) Subsection 25(1) of the Act is amended by adding after paragraph (h) the following:

(h.1) governing grants to local governments where heavy industrial properties are located for the purposes of section 18.1, including regulations

( i) prescribing the manner in which the Minister may determine the amount of a grant,

( ii) prescribing one or more formulas for the purposes of determining the amount of a grant and the manner in which a formula is to be applied,

( iii) prescribing requirements to be met by a local government to be eligible for a grant,

( iv) prescribing the circumstances in which and the time within which a grant shall be used,

( v) respecting reporting by a local government concerning the use of a grant, and

( vi) respecting any other matter that may be necessary for the proper administration of grants;

Local Governance Act

3( 1) Subsection 99(2) of the Local Governance Act, chapter 18 of the Acts of New Brunswick, 2017, is amended

(a) in paragraph (b) by striking out “local government tax base” and substituting “local government tax base, accompanied by the explanation referred to in subsection 99.01(3), if applicable,”;

(b) in paragraph (c)

( i) in subparagraph (i) by striking out “, and” at the end of the subparagraph and substituting “, and shall be accompanied by the explanation referred to in subsection 99.01(4), if applicable, and”;

( ii) in subparagraph (ii) by striking out “, and” at the end of the subparagraph and substituting “, and shall be accompanied by the explanation referred to in subsection 99.01(4), if applicable, and”.

3( 2) The Act is amended by adding after section 99 the following:

Local government rate stabilizer

99.01( 1) Subject to subsection (2), each year on or before the date prescribed by regulation, the Minister shall, in accordance with the regulations, determine for each local government a local government rate stabilizer that consists of the following components:

(a) revenue growth components; and

(b) tax rate components.

99.01( 2) The Minister is not required to determine the local government rate stabilizer for a particular local government for a given year if the Minister considers that it is not appropriate to do so in the circumstances.

99.01( 3) If the amount to be raised on a local government’s tax base under paragraph 99(2)(b) exceeds a revenue growth component of the local government rate stabilizer for the local government, the local government shall provide an explanation in accordance with the regulations for the purposes of that paragraph.

99.01( 4) If any rate under subparagraph 99(2)(c)(i) or (ii), as the case may be, exceeds the relevant tax rate component of the local government rate stabilizer for the local government, the local government shall provide an explanation in accordance with the regulations for the purposes of that subparagraph.

3( 3) Section 110 of the Act is repealed and the following is substituted:

Estimate of money required for provision of services and tax rate

110( 1) Each year the Minister shall

(a) prepare an estimate of the money required for the provision of services, including the costs of administration attributable to those services, for a rural community or a regional municipality, as the case may be,

(b) determine the amount of that estimate to be raised on the rural community tax base or regional municipality tax base, as the case may be,

(d) fix the rates at which the amount referred to in paragraph (b) is to be raised under subparagraphs 5(2)(d)(i) and (ii) of the Real Property Tax Act.

110( 2) Subject to subsection (3), for the purposes of this section, each year on or before the date prescribed by regulation, the Minister shall, in accordance with the regulations, determine for each rural community or regional municipality a local government rate stabilizer that consists of the following components:

(a) revenue growth components; and

(b) tax rate components.

110( 3) The Minister is not required to determine the local government rate stabilizer for a particular rural community or regional municipality for a given year if the Minister considers that it is not appropriate to do so in the circumstances.

110( 4) The Minister shall, in accordance with the regulations, publish an explanation

(a) for the amount to be raised on the rural community tax base or regional municipality tax base, as the case may be, under paragraph (1)(b) if that amount exceeds a revenue growth component of the local government rate stabilizer for the rural community or regional municipality, and

(b) for any rate fixed under paragraph (1)(d) that exceeds the relevant tax rate component of the local government rate stabilizer for the rural community or regional municipality.

3( 4) Section 176.8 of the Act is amended by adding after subsection (2) the following:

176.8( 3) Subject to subsection (4), for the purposes of this section, each year on or before the date prescribed by regulation, the Minister shall, in accordance with the regulations, determine for each rural district a rural district rate stabilizer that consists of the following components:

(a) revenue growth components; and

(b) tax rate components.

176.8( 4) The Minister is not required to determine the rural district rate stabilizer for a particular rural district for a given year if the Minister considers that it is not appropriate to do so in the circumstances.

176.8( 5) The Minister shall, in accordance with the regulations, publish an explanation

(a) for the amount to be raised on the rural district’s tax base under paragraph (1)(b) if that amount exceeds a revenue growth component of the rural district rate stabilizer for the rural district, and

(b) for any rate fixed under paragraph (1)(d) that exceeds the relevant tax rate component of the rural district rate stabilizer for the rural district.

3( 5) Subsection 191(1) of the Act is amended

(a) by adding after paragraph (u) the following:

(u.1) governing local government rate stabilizers for the purposes of section 99.01, including, without limitation,

( i) prescribing the manner in which the Minister determines the local government rate stabilizer for each local government,

( ii) prescribing one or more formulas for the purposes of determining the revenue growth components and the tax rate components of a local government rate stabilizer and the manner in which a formula is to be applied,

( iii) prescribing the manner of publication of local government rate stabilizers,

( iv) respecting explanations or other reports by a local government concerning amounts to be raised on the local government’s tax base that exceed the revenue growth components of the local government rate stabilizer for the local government or concerning any rate fixed that exceeds the relevant tax rate component of the local government rate stabilizer for the local government, and

( v) respecting any other matter that may be necessary for the proper administration of local government rate stabilizers;

(b) by adding after paragraph (y) the following:

(y.1) governing local government rate stabilizers for the purposes of section 110, including, without limitation,

( i) prescribing the manner in which the Minister determines the local government rate stabilizer for each rural community or regional municipality,

( iii) prescribing the manner of publication of local government rate stabilizers,

( iv) respecting explanations by the Minister concerning amounts to be raised on the rural community tax base or the regional municipality tax base, as the case may be, that exceed the revenue growth components of the local government rate stabilizer for that rural community or regional municipality or concerning any rate fixed that exceeds the relevant tax rate component of the local government rate stabilizer for the rural community or regional municipality, and

( v) respecting any other matter that may be necessary for the proper administration of local government rate stabilizers;

(mm.1) governing rural district rate stabilizers for the purposes of section 176.8, including, without limitation,

( i) prescribing the manner in which the Minister determines the rural district rate stabilizer for each rural district,

( ii) prescribing one or more formulas for the purposes of determining the revenue growth components and the tax rate components of a rural district rate stabilizer and the manner in which a formula is to be applied,

( iii) prescribing the manner of publication of rural district rate stabilizers,

( iv) respecting explanations by the Minister concerning amounts to be raised on the rural district tax base that exceed the revenue growth components of the rural district rate stabilizer for that rural district or concerning any rate fixed that exceeds the relevant tax rate component of the rural district rate stabilizer for that rural district, and

( v) respecting any other matter that may be necessary for the proper administration of rural district rate stabilizers;

Real Property Tax Act

4( 1) Section 5 of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended

(a) in subsection (1) in the portion preceding paragraph (a) by striking out “subsections (1.01) to (1.091)” and substituting “subsections (1.01) to (1.092)”;

(b) in subsection (1.0901) in the portion preceding paragraph (a) by striking out “For the year 2024 and every subsequent year,” and substituting “For the years 2024 to 2026, inclusive,”;

(c) in subsection (1.091) by striking out “For the year 2023 and every subsequent year,” and substituting “For the years 2023 to 2026, inclusive,”;

(d) by adding after subsection (1.091) the following:

5( 1.092) For the year 2027 and every subsequent year, the rates of tax to be used in paragraphs (1)(a) and (b) shall be determined in accordance with section 5.011.

(e) in subsection (2) in the portion preceding paragraph (a) by striking out “subject to subsection (2.1)” and substituting “subject to subsections (2.0001) and (2.1)”;

(f) by adding after subsection (2) the following:

5( 2.0001) For the year 2027 and every subsequent year,

(a) the rate fixed under clause (2)(a)(ii)(A) or (B) is not less than the rate fixed under subparagraph (2)(a)(i) and not more than 2.0 times the rate fixed under subparagraph (2)(a)(i),

(b) the rate fixed under clause (2)(a.1)(ii)(A) or (B) is not less than the rate fixed under subparagraph (2)(a.1)(i) and not more than 2.0 times the rate fixed under subparagraph (2)(a.1)(i),

(c) the rate fixed under clause (2)(c)(ii)(A) or (B) is not less than the rate fixed under subparagraph (2)(c)(i) and not more than 2.0 times the rate fixed under subparagraph (2)(c)(i), and

(d) the rate fixed under clause (2)(d)(ii)(A) or (B) is not less than the rate fixed under subparagraph (2)(d)(i) and not more than 2.0 times the rate fixed under subparagraph (2)(d)(i).

4( 2) The Act is amended by adding after section 5.01 the following:

Provincial rate stabilizer– 2027 and subsequent years

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

“provincial rate” means a rate of tax referred to in paragraph 5(1)(a) or (b). (taux provincial)

“provincial tax base” means the amount that is the sum of the following: (assiette fiscale provinciale)

(a) the total assessed value of all real property liable to taxation under the Assessment Act, excluding

( i) real property owned by the Crown in right of the Province,

( ii) real property referred to in paragraph (b.1) of the definition “real property” in section 1 of the Assessment Act, and

( iii) real property that is exempt from taxation under subsections 4(4), (5), (6), (8) and (9) of the Assessment Act and under section 4.1 of that Act, and

(b) the assessed value of real property owned by the Crown in right of Canada.

“value of new construction” means the value of new construction determined in accordance with the regulations. (valeur des nouvelles constructions)

5.011( 2) For the purpose of determining the provincial rates to be used for the year 2027 and every subsequent year, each provincial rate shall be adjusted so that the provincial rate to be used for the year is the amount determined by the formula

A × C/B

where

A is the provincial rate for the previous year;

B is the value of the provincial tax base for the current year; and

C is the sum of the value of the provincial tax base for the previous year, the value of new construction for the current year and the amount determined by the formula

D × E

where

D is the value of the provincial tax base for the previous year; and

E is the Consumer Price Index for Canada for the 12-month period that ended on September 30 in the previous year.

5.011( 3) Subsection (2) does not apply if

(a) the value for B is less than or equal to the value for C, or

(b) the value for B is less than the value for D.

5.011( 4) On or before the date set by regulation, the Minister shall file with the Clerk of the Legislative Assembly a report that contains every provincial rate determined under subsection (2) for the subsequent year.

4( 3) Section 12 of the Act is amended

(a) by repealing paragraph (4)(b) and substituting the following:

(b) all of the information referred to in subparagraphs (a)(i) to (v) is published on the website of the Department of Finance and Treasury Board for 14 days.

(b) by repealing subsection (4.001) and substituting the following:

12( 4.001) The Minister may publish in a newspaper having general circulation in the area where the real property is located, if any, the information referred to in subparagraphs (4)(a)(i) to (v) or any portion of that information that the Minister determines.

4( 4) Section 26 of the Act is amended by adding after paragraph (b.1) the following:

(b.11) for the purposes of section 5.011, respecting the determination of the value of new construction;

Residential Property Tax Relief Act

5( 1) Section 1 of the Residential Property Tax Relief Act, chapter R-10 of the Revised Statutes, 1973, is amended in the definition “allowance” by striking out “the amount” and substituting “an amount”.

5( 2) Subsection 6.1(1) of the Act is amended by striking out the portion following paragraph (b) and substituting the following:

did not exceed a prescribed amount in the previous calendar year or was within a prescribed range in the previous calendar year, as the case may be.

5( 3) Section 14 of the Act is amended

(a) by repealing paragraph (b) and substituting the following:

(b) respecting amounts of allowances for the purposes of subsection 6.1(1);

(b) by adding after paragraph (b) the following:

(b.1) prescribing formulas for the purposes of adjusting the amounts of allowances and the manner in which a formula is to be applied;

(d) by adding after paragraph (c) the following:

(c.01) prescribing formulas for the purposes of adjusting total taxable income amounts and ranges and the manner in which a formula is to be applied;

Regulation under the Residential Property Tax Relief Act

6 Section 6.1 of New Brunswick Regulation 84-191 under the Residential Property Tax Relief Act is amended

(a) by repealing subsection (2);

(b) in subsection (2.1) in the portion preceding paragraph (a) by striking out “for the year 2010 or any succeeding year” and substituting “for the years 2010 to 2026, inclusive,”;

(c) in subsection (2.2) in the portion preceding paragraph (a) by striking out “for the year 2010 or any succeeding year” and substituting “for the years 2010 to 2026, inclusive,”;

(d) in subsection (2.3) in the portion preceding paragraph (a) by striking out “for the year 2010 or any succeeding year” and substituting “for the years 2010 to 2026, inclusive,”;

(e) by adding after subsection (2.3) the following:

6.1( 2.4) If the total taxable income referred to in subsection 6.1(1) of the Act does not exceed $25,000 in the previous calendar year, the amount of the allowance to be applied under that subsection in respect of real property for the year 2027 is the lesser of

(a) the total amount of the taxes in respect of the portion of that real property used as a residence which are imposed in the year for which the application for the allowance is made, and

(b) $400.

6.1( 2.41) If the total taxable income referred to in subsection 6.1(1) of the Act exceeds $25,000 but does not exceed $28,000 in the previous calendar year, the amount of the allowance to be applied under that subsection in respect of real property for the year 2027 is the lesser of

(a) the total amount of the taxes in respect of the portion of that real property used as a residence which are imposed in the year for which the application for the allowance is made, and

(b) $300.

6.1( 2.5) If the total taxable income referred to in subsection 6.1(1) of the Act exceeds $28,000 but does not exceed $32,000 in the previous calendar year, the amount of the allowance to be applied under that subsection in respect of real property for the year 2027 is the lesser of

(a) the total amount of the taxes in respect of the portion of that real property used as a residence which are imposed in the year for which the application for the allowance is made, and

(b) $200.

6.1( 2.6) If the total taxable income referred to in subsection 6.1(1) of the Act exceeds $32,000 but does not exceed $35,000 in the previous calendar year, the amount of the allowance to be applied under that subsection in respect of real property for the year 2027 is the lesser of

(a) the total amount of the taxes in respect of the portion of that real property used as a residence which are imposed in the year for which the application for the allowance is made, and

(b) $100.

6.1( 2.7) For the year 2028 and any succeeding year, a total taxable income amount referred to in subsection (2.4), (2.41), (2.5) or (2.6) shall be adjusted using the formula

A + (A x B)

where

A is the total taxable income amount for the previous year;

B is the Consumer Price Index for Canada for the 12-month period that ended on September 30 in the previous year.

6.1( 2.8) For the year 2028 and any succeeding year, the amount of an allowance referred to in paragraph (2.4)(b), (2.41)(b), (2.5)(b) or (2.6)(b) shall be adjusted using the formula

C + (C x B)

where

C is the amount of allowance for the previous year;

B is the Consumer Price Index for Canada for the 12-month period that ended on September 30 in the previous year.

6.1( 2.9) If an adjustment under subsection (2.7) or (2.8) would result in a decrease in a total taxable income amount or in the amount of an allowance, no adjustment shall be made.

Commencement

7 Subsections 1(2) and (3) and sections 2, 3, 5 and 6 of this Act come into force on a day or days to be fixed by proclamation.