Tenants could feel the brunt of a spike in New Brunswick’s property assessment values, according to the New Brunswick Apartment Owners Association.
Some tenants could see a rise in rent of about $700 after many apartments watched their property tax assessment jump by 20%, they stated in a news release.
In light of the severe increases, the association has renewed their calls for the province to address the double tax.
“It’s a historic increase in the property tax, and it’s going to have to flow through to the tenants,” said Willy Scholten, the President of the New Brunswick Apartment Owners Association.
The double tax is where non-owner-occupied buildings are taxed by their municipality as well as the province, a system removed in every province except for New Brunswick.
The largest expense for apartment owners in New Brunswick is property tax, with about two months of each tenant’s rent going towards the cost, Scholten said.
In response to these increases, Scholten wants the Government of New Brunswick to reduce the tax by 50% for this year and create a formula to eventually eliminate the double tax.
“We’re not saying that homeowners should pay more. We’re saying that the taxes on tenants and rental properties be reduced to come in line with the rest of Canada,” Scholten said.
He referenced affordable housing, a promise frequently made in the elections New Brunswickers recently participated in – municipal, provincial and federal. Scholten said that there were many discussions on the topic, but that’s not evident with these increases.
