Property Assessment Services - Residential Property Tax Credit
The Residential Property Tax Credit can give property owners a tax break on their principal residence.
This program may be divided into five distinct categories:
(a) 100% Tax Credit - a property may be eligible for a 100% tax credit on the residential portion of the assessed value if the assessed owner maintains his/her principal residence on the property on January 1st. These properties include a single-family residence, a duplex, a triplex or an apartment building. In the case of a duplex, triplex or an apartment building, only the portion of the property maintained as the owner's principal residence and up to 0.5 hectares of land is eligible for the credit. Applications must be completed by the owner.
(b) Partial Tax Credit - if a person becomes the owner of a property on or after January 1st, 1983, that person will be eligible for a partial tax credit on the portion of the property maintained as their principal place of residence and up to 0.5 hectares of land, either from the date the property transfers to his/her name or from the date the assessed owner takes up residency in the property, whichever is later, provided a credit has not already been awarded to the property for that year. Applications must be completed by the property owner.
(c) New Construction Tax Credit - a new construction tax credit may be awarded to a property if that property is to be used as a single family residence, whether or not it is completed and if it has never been occupied by anyone, either by the assessed owner or any other person. This type of credit is awarded on a yearly basis only.
(d) Residence occupied for at least 183 days in calendar year - the assessed owner on January 1st may be eligible to receive a tax credit on their property if they have maintained their residence on the real property for at least 183 days and if they are not eligible to receive a credit on any other real property for the year as "a principal place of residence. NOTE - the applicant must be a resident of the Province of New Brunswick to qualify under this provision. The difference in this type of credit and that described under subsection (a) above is that this section deals with a "residence" not a "principal place of residence".
(e) Properties purchased under an Agreement of Purchase and Sale - if a person becomes the owner of real property on which he/she has maintained his/her principal place of residence on real property that has been purchased under an Agreement of Purchase and Sale, a tax credit may be available for the year of purchase and 3 prior years if:
i) the person was required under the Agreement to purchase the real property within 3 years after the date the agreement was executed;
ii) the person maintained their principal residence on the real property after the date the agreement was executed;
iii) the agreement was registered in the registry office for the county in which the real property lies within ninety (90) days after it was executed;
the person became the owner of the real property in accordance with the agreement (registers a deed);
iv) no other person was entitled to a credit on the property for that period.
Section (d) is effective beginning January 1st, 1999. Section (e) applies only to Agreements of Purchase and Sale executed after January 1st, 1999.
Credits the assessed owner of real property an amount equal to all or a portion of the provincial rate of tax on the portion of the property occupied as the residence of the assessed owner and up to .5 ha of land. For those properties located in municipalities (cities, towns and villages) the amount of the tax credit is equal to the provincial rate of tax ($1.4573 per $100 of assessed value). Those properties located in local service districts receive a portion of the provincial rate of tax or $0.85 cents per $100 of assessed value.
When residential property transfers to a new owner, the tax credit is removed from the property until such time as the new owner completes an application that indicates if and when the property became the place of residence of the owner.