March 12, 2010
FREDERICTON (CNB) - The low-income property tax allowance is being improved immediately, effective with the 2010 property tax bills.
This step, announced today by Finance Minister Greg Byrne, is among initiatives being undertaken by the provincial government to provide greater property tax relief to New Brunswickers.
The low-income property tax allowance, which has not been adjusted since 1995, is being improved to provide:
The current allowance provides a $200 benefit to households with total taxable incomes up to $20,000. The improvements will increase the benefit and extend eligibility to those with total taxable incomes up to $30,000.
This measure will provide tax relief to homeowners in the amount of $10 million and will assist about 40,000 homeowners.
The provincial government has already increased the low-income seniors benefit to $400 for 2010, up from $100 in 2006.
The provincial government is inviting municipalities to reconsider their tax rates for 2010. If all municipalities were to follow the property tax accountability mechanism, this would result in savings to property taxpayers of $13 million in addition to the $12 million in savings already passed on as a result of changes to the property tax rate.
Byrne and Local Government Minister Chris Collins will soon consult with municipal associations about changes to property taxation. Changes will aim to limit or constrain annual increases in provincial and local property taxation in order to protect individual New Brunswick taxpayers.
MEDIA CONTACT: Marc Belliveau, communications, Department of Finance, 506-453-4138.