New Brunswick
Kirby Burditt lives in a modest house on Saint John's west side that he has owned for 17 years, and he isn't looking forward to receiving this year's property tax bill, which is to be mailed out by the province today.
Higher property taxes are another cost-of-living blow to many
Robert Jones · CBC News
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Kirby Burditt lives in a modest house on Saint John's west side that he has owned for 17 years, and he isn't looking forward to receiving this year's property tax bill, which is to be mailed out by the province today.
"Any little extra really takes the biteout of you," said Burditt. "You're always in a slump and it keeps you in a slump."
Like many in his neighbourhood, Burditt received notice of a 46 per cent jump in the assessment of his house in January.
Heknows that means his tax bill is now on a schedule to jump by as much as $900 over the next four years, beginning with what will likely be a $180 increase on this year's bill.
"It will make a difference," said Burditt, whoworks at a job that pays $21 an hour.
"I don't drink, I don't smoke, I don't gamble. I haven't been away for one night in 14 years.I just don't have the money.Even when you're trying to live sensibly, it just costs a fortune."
Burditt's tax bill is one of more than 460,000 scheduled to be issued to propertyowners across New Brunswick today.
Combined they will raise more than $1.5 billion for local governments and the province to help finance operations for the comingyear.
Larger tax assessments came last year
Last fall, the province announced that assessed property values in New Brunswick had risen by $8.4 billion during the past year to a record $89.4 billion.
Most of that increase has been on residential properties caused by rapidpopulation growth and sudden high demand for housing in New Brunswick.It's a combinationthat ensures tax bills will be jumping over last year, even with efforts to minimize amounts.
The province requires large assessment increases to be phased in at a maximum rate of 10 per cent per year, and multiple municipal governments have been trying to offset increases with tax rate cuts, but neither is enough to keep bills from rising.
In Saint John, city council has dropped the residential tax rate for three years in a row, including by 2.4 per cent this year. But with a homeowner like Burditt dealing with a 46 per cent assessment increase, including 10 per centthat is taxablethisyear, what he pays will rise more than seven per cent.
He then faces a 10 per cent increase in each of the three following years.
Saint John Mayor Donna Reardon said she expects to hear from unhappy city residents in the days ahead and understands why.
"There is a stingin a bill when you get it and those are big bills," said Reardon. "So yes, we probably will hear from people"
City frustrated it can't change rates
Saint John was frustrated this year by not being allowed to direct larger tax cuts at residential property owners by reducing ratecuts to industrialproperties because provincial tax rules forbid it.
Industrial properties in Saint John had to be given thesame 2.4 per cent tax rate reduction residentialproperties received, even though as a group their assessments increased little and the reduction meant they would pay the city less in 2024 than last year.
Saint John wrote a letter to the province asking for more authority to adjust its tax rates for residential, commercial and industrial properties independently of one another.
Saint John finance commissioner Kevin Fudge explained to city councillors that most Canadian municipalities have much more control over property tax issues.
"We would really like to have no restrictions and set what we want to set," Fudge told councillors at a budget meeting in November.
"We would like the ability to set as many classes as we want and set the rates the way we want, based on what works for the City of Saint John."
Nevertheless,Saint John homeowners are better off than many.
- New Brunswick homeowners facing another year of surging property assessments — and taxes
- New Brunswick property tax bills are out. Homeowners are hit the hardest — again
In Moncton, the residential tax rate has dropped just 1.5 per cent this year;in Fredericton it is down less than oneper cent; and in communities like Edmundston, it has not changed at all.
That means residential property owners dealing with a full 10 per cent increase in their taxable assessment will see even higher increases than Saint John residents do when tax bills begin arriving in the next few days.
ABOUT THE AUTHOR
Robert Jones
Reporter
Robert Jones has been a reporter and producer with CBC New Brunswick since 1990. His investigative reports on petroleum pricing in New Brunswick won several regional and national awards and led to the adoption of price regulation in 2006.
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