N.B. increases property tax rebate

The New Brunswick government is going to offer more money to more low-income people who are hit hard by property tax increases, says the finance minister.

Homeowners will be able to apply for a rebate of between $100 and $300, depending on their income, said Greg Byrne.

The province is also broadening the definition of who can qualify for the rebate to include households with incomes up to $30,000 dollars, he said.

The low-income property tax allowance, which has not been adjusted since 1995, previously offered a $200 benefit to households with total taxable incomes up to $20,000.

The changes take effect immediately, said Byrne.

"I think it reflects the reality that it's becoming increasingly difficult for some people to deal with the challenge of increases property taxes," he said.

"We want to encourage people obviously to be able to stay in their homes and meet their financial obligations, and again this program will help the most vulnerable."

The changes are expected to assist about 40,000 homeowners, providing tax relief in the amount of $10 million, Byrne said.

Earlier this week, Byrne said the government will introduce measures to limit property tax increases for everyone before the end of the legislative session.

He has declined to divulge any details, but has ruled out a cap on property taxes.

[B]More changes coming[/B]

Byrne and Local Government Minister Chris Collins will soon consult with municipal associations about changes to property taxation.

Meanwhile, the government is "inviting" municipalities to reconsider their tax rates for 2010, Byrne said Friday.

"If all municipalities were to follow the property tax accountability mechanism, this would result in savings to property taxpayers of $13 million in addition to the $12 million in savings already passed on as a result of changes to the property tax rate," he stated in a news release.

Service New Brunswick assesses property across the province and then sends out tax bills based on the tax rates fixed in the homeowners' local community.

Byrne has said he believes many property tax bills are too high because some municipalities did not follow a transparency formula pushed by the provincial government.

Under the Property Tax Accountability Mechanism introduced last year, if assessed home values went up beyond the inflation rate plus the value of new construction done on the property, a new formula would kick in.

That would force the local tax rate to automatically go down and local councils that want to collect more property tax would have to raise it back up through a vote.

[B]Significant hikes[/B]

Homeowners across New Brunswick have been receiving their annual property tax assessments and tax bills in the mail in recent weeks. Many have seen a significant hike.

A man from Quispamsis, who lives next to an old solid waste dump, is refusing to pay his property tax bill after his assessment increased almost 150 per cent.

Greg Boyle said his assessment jumped to nearly $145,000 this year, up from $58,000.

His bill increased about $1,000 to $1,797.

"This is unbelievable," he said.

"There's no logical sense for living beside a toxic waste dump that a tax bill should increase by tripling it."

Boyle said he has already filed an appeal.

He has had low assessments for years, he said.

He believes new subdivisions in his neighbourhood of French Village are to blame.