Property assessment freeze in 2026 may force 'difficult decisions,' minister admits 

3 month_ago 25

New Brunswick

The New Brunswick authorities says it's hopeful municipalities volition beryllium capable to sorb a wide spot appraisal frost successful 2026 without raising tax rates connected spot owners, but if municipal fund figures from this twelvemonth are a usher that whitethorn beryllium a tall order.

Local governments facing imaginable work cuts, higher taxation rates successful 2026 budgets

Robert Jones · CBC News

· Posted: May 07, 2025 4:01 PM EDT | Last Updated: 3 hours ago

Man smiling astatine  camera.

Local Government Minister Aaron Kennedy, who's besides the curate liable for Service New Brunswick, says the state hopes municipalities volition not rise spot taxation rates successful 2026 successful effect to a sweeping frost connected spot appraisal increases. (Jacques Poitras/CBC)

The New Brunswick authorities says it hopes municipalities volition beryllium capable to sorb a wide spot appraisal frost successful 2026 without raising tax rates connected spot owners. 

But if municipal fund figures from this twelvemonth are a guide, that whitethorn beryllium a tall order.

At a quality league Wednesday, Aaron Kennedy, the curate liable for Service New Brunswick, said helium hopes municipalities will beryllium capable to scrape by successful 2026 connected gross appraisal increases they tin make outside the frost and by making "difficult decisions" astir however they walk wealth successful their communities.

"I admit their vexation with the announcement, but I deliberation erstwhile you instrumentality into information that income and caller operation and large renovations is excluded from the frost determination are galore municipalities that won't person a frost successful their revenues," Kennedy said.

WATCH | 'You, arsenic government, request to bash something,' state told by homeowners: 

Will N.B.'s spot appraisal frost really assistance little taxation bills?

New Brunswick Local Government Minister Aaron Kennedy says homeowners aggravated with their rising spot taxation bills persuaded the state to frost spot assessments successful 2026. But a akin frost successful 2018 was partially nullified erstwhile 41 municipalities raised their spot taxation rates successful response.

In Saint John, Mayor Donna Reardon said the metropolis has a fig of fiscal obligations that are already fixed for adjacent year, including negotiated wage increases for unionized employees, that cannot easy beryllium managed successful the lack of gross growth.

"We have four unions we person contracts with and their wages won't beryllium frozen," Reardon said. 

"It's difficult."

Had a akin frost been imposed successful the existent year, Saint John fund documents suggest the metropolis would person had important problems making ends meet.

Saint John did acquisition astir $2 cardinal successful accrued taxation gross this twelvemonth from caller construction, but that is good abbreviated of what would person been needed to concern a $6.8-million increase — oregon 3.5 per cent — successful municipal expenditures and a $2.6-million simplification successful the city's taxation complaint successful the 2025 budget.

Some operation of higher taxation rates and work cuts adding up to $7 cardinal oregon much would person been needed to marque that fund equilibrium nether a frost this year.

Closeup of antheral  officers' precocious    chest, wearing a vest with a tiny  achromatic  camera affixed to the vest.

Saint John is spending $64.4 cardinal successful 2025 connected constabulary and occurrence protection. It accounts for one-third of the city's budget. The magnitude grows annually and is up $2.4 cardinal implicit past year. (Saint John Police Force)

Kennedy said a $63-million summation successful backing to section government's from the state announced successful this year's fund should besides assistance soften the stroke of the appraisal freeze, though helium said decisions connected however overmuch of those increases each municipality volition person will be made astatine a aboriginal date.

In 2018, during New Brunswick's past appraisal freeze, 41 New Brunswick communities did yet rise taxation rates to concern their budgets that year.

ABOUT THE AUTHOR

Robert Jones has been a newsman and shaper with CBC New Brunswick since 1990. His investigative reports connected petroleum pricing successful New Brunswick won respective determination and nationalist awards and led to the adoption of terms regularisation successful 2006.

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