Soaring Property Values and Increasing Taxes in New Brunswick

Property values across New Brunswick have surged dramatically over the past three years, with average assessments for homes on Kraton Avenue in St. John rising by 66% in just two years. This notable increase includes a steep 22% hike this year, following a massive 36% rise last year. Similar trends are observed in various neighborhoods, such as the North End where properties jumped by 56% and the Lower West Side with an increase of 74%. This rapid rise in property assessments has started to trigger corresponding increases in property taxes, albeit gradually—New Brunswick's regulations allow for a maximum tax increase of 10% per year, meaning full adjustments could take years. Many municipalities are hoping that these increasing tax burdens will compel homeowners to raise concerns during the upcoming municipal elections. While this situation is not unusual in Canada, New Brunswick’s rules prevent municipalities from easily adjusting tax rates downward to offset rising assessments. The lack of flexibility in tax rate adjustments, with residential rates unable to fall below 58.8% of business property taxes, limits municipalities' ability to offer relief to homeowners. Unless new powers are restored to municipalities, homeowners may face sustained tax increases that could last for several years, leading to an urgent need for policy change.