N.B. Businesses Pay Much Higher Property Tax Rates Than Homeowners, Says Industry Advocate
SAINT JOHN – Businesses in New Brunswick pay much higher property taxes than homeowners, says the Canadian Manufacturers and Exporters (CME) in its ongoing campaign against an opposition member’s bill to include machinery and equipment as part of property tax assessments.
“New Brunswick businesses pay some of the highest property taxes in Canada. In this province, businesses in cities, towns and villages pay about 300 per cent higher property tax rates than homeowners,” said Ron Marcolin, divisional vice president for New Brunswick and PEI with CME, in a release. “We agree that business must pay its fair share but adding a tax on machinery and equipment is a mistake that will drive investment away from New Brunswick.”
Liberal MLA Gerry Lowe introduced a bill last December that would repeal exemptions for machinery and equipment in the provincial Assessment Act.
A former Saint John city councillor, Lowe believes industrial businesses – in particular, the Irving Oil refinery – are receiving tax breaks that make it hard to give homeowners a break on their taxes. At $1.785 per $100 of assessed value, Saint John residential property owners pay the highest rate in the province.
The CME says the proposed changes to the Assessment Act affect a range of small and large businesses across the province that employs 31,000 people – from small pizza places to large operations like the refinery.
The organization says non-residential property taxes in New Brunswick are already amongst the highest in Canada. It says proposed changes under Bill 9 would increase property taxes for some facilities by more than 500 per cent, making the province uncompetitive with other provinces. The CME says Alberta is the only province that taxes machinery and equipment broadly and says the tax is not applied in the main cities of Calgary and Edmonton.
“Businesses in New Brunswick already pay their fair share of property taxes, and arguably more than their fair share when compared to tax rates in neighbouring provinces,” said Marcolin. “Now there is the threat of Bill 9 which will hurt businesses in every part of the province.
“Bill 9 won’t just impact big businesses – the way it is written means that every pizza shop and bakery will see their property taxes go up. Bill 9 will discourage new investment in New Brunswick, and we strongly urge all elected officials in New Brunswick to consider the negative impact of this misguided new tax.”