Two weeks ago the Province released its long awaited "white paper" on taxation. This has been in the works since the election and REALTORs were curious if something would be done about some of the inequities in our tax system.
The good news is that the provincial government has made some very good proposals in what they are calling Phase 1 of there tax strategy. The most important change is they will make changes to how non-owner occupied properties are taxed. This was something the Government Relations committee of the New Brunswick Real Estate Association (NBREA) has lobbied for for a number of years. In fact, a number of the changes in the White Paper were items NBREA lobbied for at the time of the last Provincial election.
In NB a property has two tax components, a municipal portion and a provincial portion. If you own a property that is not your primary residence, ie. cottage, investment property, etc., you will pay both portions - the so-called "double tax". On your primary residence, you just pay just the municipal portion.
This double tax has made it very difficult for owners of small rental properties, under 4 units, to make enough money to maintain their properties, let alone make a return on their investment. In some cases the property taxes eat up 3 or 4 months rent. REALTORS welcome any relief the province can bring to this situation.