New Brunswickers Face Highest Business Tax Burden in Canada

September 14, 2018

FREDERICTON – Unfair property taxes, including double taxes, disproportionately impact New Brunswickers and discourage business development, according to data released by the New Brunswick Real Estate Association (NBREA).

Using last year’s tax rates, the owner of a Halifax building assessed at $5 million would pay $167,000 in property taxes. In Saint John, that same building owner would pay $242,800 – nearly 50 per cent more.

“Double taxation hurts all of us in New Brunswick, and it hurts our economy by discouraging real estate investment and business development,” said Kari McBride, Chair of the NBREA Government Relations Committee. “We’ve been asking for an end to double taxation since 2010, and this data shows just how much our property taxes are out of touch with reality.”

A C.D. Howe Institute report found that New Brunswick cities have the highest business tax burden in Canada when business property and land transfer taxes are also considered.

“New Brunswick bills itself as an affordable place to live and grow a business, but our property taxes could make a potential homebuyer or investor think twice,” said McBride.

The New Brunswick Apartment Owners Association has also called for an end to double taxation, citing the financial impact to renters such as students and seniors, who pay the tax through their rent.

“Double taxation is bad for all New Brunswickers, but especially for those who can least afford it,” said Willy Scholten, President of the New Brunswick Apartment Owners Association.

The NBREA’s call to end double taxation forms part of the organization’s larger goal of common-sense property taxes, with three key priorities identified for improvements:

  1. Fair property value assessments
  2. Fair land transfer taxes, where buyers are taxed based on property sale prices
  3. An end to double property taxes

The NBREA is calling for the creation of a task force with government and non-government members to recommend changes, as well as a comprehensive review of the province’s entire property tax system. More information can be found at nbrea.ca/election2018

 

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Contact:
Jamie Ryan
CEO, New Brunswick Real Estate Association
506-459-8055
jryan@nbrea.ca

Willy Scholten
President, New Brunswick Apartment Owners Association
wscholten@colpittsdev.ca
506-470-2848

www.stopdoubletax.ca