Atlantic Update

Submitted by: Greg Kerry, Crombie REIT, Halifax, NS

The major update from the east coast of the country are changes in New Brunswick to the assessment and taxation regimes. As members may or may not be aware, NB froze all* assessments in 2026 to give the province time to study the current assessment and taxation system, conduct stakeholder consultations, make recommendations to government, and draft legislation. It is worth noting that CPTA members took part extensively in these consultations both on behalf of the CPTA and as members of other organisations and interest groups.

*Freeze subject to a number of exclusions and exceptions including properties that have transferred and new construction.

After more than a year of planning the government introduced a draft bill in the New Brunswick legislature on May 27^th. The stated intent of the amendments to the Assessment Act include:

Creation of ‘stabiliser rates’, which appear to be from the same neighbourhood as revenue-neutral tax rates. The intent of the stabiliser rates is to increase transparency in municipal budgets, encouraging municipal units to budget based on actual revenue needs rather than assessment base growth.
Provincial rate stabiliser, which appears to do the same as the stabiliser rates ‘suggested’ to municipalities
A broadening of the rate multiplier between residential and commercial tax rates from 1.3 to 1.7 to 1.0 to 2.0
An increase in the appeal period from 21 days to 30 days, in line with the period for filing requests for review (RfRs).

As with many things, the devil is in the details. Much of the new legislation makes the specifics a matter of policy and regulation rather than law. While this does allow for flexibility in the future, it also means that much of the fine detail is to be determined.

In conjunction with their stakeholder consultations, the Government of New Brunswick also commissioned a report from the International Property Tax Institute (IPTI) analysing the assessment system (and to a lesser degree taxation) in New Brunswick. The report was made public by the Province on May 21, 2026. Much of the CPTA’s feedback is acknowledged in the report – a lack of equity and the inability to challenge classification, amongst many other concerns. However, acknowledgements fall short of making recommendations or even suggestions which address the concerns raised by the CPTA.

Of particular curiosity is IPTI’s recommendation (or lack thereof) on equity:

“Whilst IPTI does not consider that an equity clause needs to be included in the legislation, IPTI recommends that PAS [Property Assessment Services] should take steps to address any inequity between assessed values as soon as practicable once such a situation has been drawn to its attention.”

Evaluation of Property Tax Assessment Methodology in New Brunswick, IPTI, Paragraph 9.56

The basis on which it makes this recommendation is that all properties should (will) be assessed correctly and in what could be limited scenarios, corrections should be made:

“IPTI’s view about the need for an equity clause in the legislation is that, if assessors within PAS are doing their job properly, all properties would be assessed at 100% of their market value and no inequity would arise…it is incumbent on PAS to address any errors in assessed values as soon as they are drawn to the assessing agency’s attention”

Evaluation of Property Tax Assessment Methodology in New Brunswick, IPTI, Paragraph 9.55-9.56

Without the addition of a uniformity provision owners who find themselves assessed at 100% of market value while the roll itself is at 80% or 90% – anything less than 100% of market value – will continue to find themselves without recourse to remedy that inequity.

It’s hard to imagine that the province will make changes to assessment practice, policy, or legislation in these areas without further consultation and lobbying; and may even be emboldened to maintain the status quo with IPTI’s implicit endorsement.

It is encouraging that the IPTI report does in fact make a formal suggestion to increase access to and transparency with assessment data, one of the CPTA’s recommendations (which has been made many times) (Evaluation of Property Tax Assessment Methodology in New Brunswick, IPTI, Paragraph 4.19). IPTI’s report of course makes numerous other recommendations, many of which should be considered seriously and would contribute to a healthier assessment and taxation ecosystem in New Brunswick. The IPTI report is available from GNB’s website, https://www.gnb.ca/en/news/n-b.2026.05.report-and-recommendations-released-following-property-assessment-review.html.

No further details on specific regulations or policies have been released at this time, and updates will be provided to The Assessment as they become available.