News Release

FREDERICTON (GNB) – Property owners will begin receiving their annual tax bills today. Due to legislation adopted by the government last year, the Canaport LNG property in Saint John will be paying significantly more in taxes.

“Our legislation ensures fair taxation on the LNG terminal property and gets results for the City of Saint John on one of its key priorities,” said Service New Brunswick Minister Ed Doherty. “Saint Johners wanted action on this issue, and we listened and delivered.

“As a reminder, as a result of a legislative amendment, the taxation for the property will increase to more than $2.6 million from just $500,000 in 2016 for the City of Saint John,” said Doherty.

When conducting a property tax assessment, Service New Brunswick must establish the real and current market value of a property. Due to the complexity of this property, Service New Brunswick hired Nationwide Consulting Company, a firm with international experience in the valuation of petroleum and liquefied natural gas facilities, to provide expertise and assistance in deriving the market value effective Jan. 1, 2017. According to the company, the depreciation of the Canaport LNG Terminal is due to external forces caused by a decline in commodity prices and an oversupply in the natural gas industry. This has affected both the competitiveness and market value of the Saint John facility.

As the government indicated on Oct. 25, because there is the possibility of an appeal, the additional tax revenue will be set aside in a special account to protect the financial integrity of the provincial government, the City of Saint John and local governments that receive equalization payments until any appeal to the valuation of the property has been resolved. When the property valuation is finalized, any balance in the account, with applicable interest, will be paid to Saint John and other entitled local governments.

For 2017, 62 per cent of properties in New Brunswick will have either a decrease or no change in assessment values.

A recent report from Statistics Canada revised New Brunswick’s GDP growth rate for 2015, stating it had expanded by 2.3 per cent that year. This represents the largest gain since 2004 and was greater than the total growth of 0.9 per cent seen between 2007 and 2014. Furthermore, the province’s real GDP growth was third-highest among the provinces. Given the 2015 result and expectations for 2016 and 2017, the government said the province’s economy is on track to grow by 3.5 per cent over a three-year period, which would be more than triple the growth rate between 2007 and 2014.

The provincial government has decreased the tax rate on apartments and cottages, with the last decrease in 2016 bringing the rate down to 1.1 from 1.5 in 2012, a reduction of 23 per cent. Property owners are eligible for a provincial tax credit on all or a portion of the provincial tax if they own and occupy their property and it is considered it to be their primary residence.

People with concerns about their property assessment have until March 31 to appeal. Property taxes are due by May 31, however, owners may choose to pay the tax on their primary residence through 12 monthly installments.