On March 21, 2023, Finance and Treasury Board Minister Ernie Steeves presented the 2023–2024 New Brunswick budget. Projecting a surplus of approximately $40 million, this year’s budget focuses on the province’s key priorities of: improving healthcare, education, and community safety; supporting vulnerable populations; addressing housing affordability and the rising cost of living; and promoting sustainable economic growth.
In addition to personal income tax rate reductions for 2023 introduced last fall, the budget includes a few significant tax changes, as summarized below.
Carbon Tax
Previously, New Brunswick employed a “Made-in-New Brunswick” approach to the carbon tax. However, this methodology was reconsidered when other Atlantic provinces chose to adopt the federal backstop for carbon taxation. Based on the ensuing analysis, the province has decided to use the federal backstop like its regional neighbours. This change will result in rebates for individual residents stemming from the amount of carbon tax collected in the province each year. Notwithstanding any lost provincial tax revenue due to the new approach, the government has reaffirmed its commitment to previously enacted reductions to gasoline and motive fuel tax rates.
Property Tax
In this year’s budget, the government reminded taxpayers that previously announced property tax rate reductions were accelerated last fall to be fully implemented for the 2023 taxation year. The resulting total provincial property tax rate reductions from 2021 are 50% for non-owner-occupied residential properties and 15% for other residential and non-residential properties.
In addition, assessment values on newly constructed apartment buildings with at least two units and buildings renovated to add rental units will be phased in to encourage more investment in rental housing.
More Information
For information on new and extended government funding initiatives included in this year’s provincial budget, please navigate to:
https://www.mentorworks.ca/blog/government-funding/new-brunswick-2023-budget/
Further details on New Brunswick’s 2023 budget may be found on the province’s website at:
https://www2.gnb.ca/content/gnb/en/corporate/promo/budget.html
To read key updates from Canada’s 2023 provincial budgets, please navigate to Key Changes | 2023 Canadian Federal and Provincial Budgets.
If you have any questions about how tax changes proposed in recent Canadian budgets might impact your organization, please do not hesitate to contact the Ryan TaxDirect® line at 1.800.667.1600 or taxdirect@ryan.com.