Southern N.B. cities propose property tax cuts for 2022

Some New Brunswick cities are looking to cut their property tax rates for 2022 because higher assessed values are boosting their budgets.

The overall provincial tax base grew by 7.7 per cent this year, according to Service New Brunswick - or $5.2 billion - due to new construction and real estate sales.

It means a windfall for some municipalities, which are now in the midst of their annual budget deliberations.

In Moncton, assessed property values have increased by 10.89 per cent, according to municipal budget documents posted online. And the city is looking at reducing the property tax rate by 10.25 cents to $1.5472 per $100 of assessed value.

In Saint John, an online budget proposal shows assessed value up by 6.2 per cent and the finance committee proposing a 7.5 cent reduction in the tax rate, which would take it to $1.71 per $100.

In Fredericton, assessed property values are up by an average of 9.2 per cent. And this week city councillors voted to cut the property tax rate by 2.25 cents to $1.4086 per $100.

The consensus on council was that 2.25 cents was "fair," said Henri Mallet, chair of Fredericton's municipal finance and corporate administration committee.

It will allow the city to "address some needs" and "give back to citizens," Mallet said.

Despite the rate cut, Fredericton homeowners will see their tax bill increase by hundreds of dollars.

Average house assessments in the city have risen to $252,464, said Mallet. That means an average tax bill will increase by $348 to $3,556.21.

City revenues, in turn, are expected to increase by about $8 million, he said.

Spending will increase on renewing infrastructure, such as roads and pipes.

"The longer that we push those down the road the cost gets higher and higher," Mallet said.

The extra money will also help cover increasing costs, he said, such as solid waste tipping fees, insurance premiums and other bills that need to be paid.